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Patheon Completes Banner Pharmacaps Acquisition

12/14/2012 5:43 PM ET

Patheon Inc. (PTI.TO: Quote) said Friday that it has completed its acquisition of Banner Pharmacaps, a specialty pharmaceutical business dedicated to the research, development and manufacturing of unique gelatin-based dosage forms.

The deal was orginally anounced in late October.

Banner is the world's second largest pharmaceutical business focused on delivering proprietary softgel formulations. The company has four manufacturing facilities, significant proprietary technologies and products. Banner is headquartered in High Point, N.C., with additional research labs and manufacturing facilities in the Netherlands, Canada and Mexico.

The acquisition was structured as a purchase of all of the shares of the entities through which Banner conducts its operations for a purchase price of about US$255 million, subject to adjustment for working capital and pay-off amounts for existing debt and transaction expenses.

In connection with the closing of the acquisition, Patheon completed its previously announced refinancing, pursuant to which it entered into US$660 million senior secured facilities, comprised of a US$575 million term loan facility and a US$85 million revolving facility.

Patheon has used or expects to use the new facilities to finance the purchase of Banner, repurchase its existing senior secured notes, repay any borrowings outstanding under its existing revolving credit facility, pay fees and expenses associated with the transactions and for general corporate purposes.

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by RTT Staff Writer

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