AMRI acquires Spanish drugmaker Gadea

Albany Molecular Research (Nasdaq: AMRI) says it has acquired all the outstanding shares of Gadea Pharmaceutical, a privately-held company located in Valladolid, Spain, specializing in technically complex active pharmaceutical ingredients (APIs) and finished drug product.

Gadea operates a highly regarded API and finished dose development and manufacturing business with 2014 revenue of around $83 million and 2014 adjusted EBITDA of approximately $17 million. Gadea is expected to continue to operate independently within AMRI's API segment. On a stand-alone basis, Gadea's forecasted full-year 2015 revenue is estimated to be between $80 million and $90 million, with adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $18 million-$20 million, implying a purchase price multiple of about 9 times 2015 adjusted EBITDA at the midpoint of the range. Adjusted EBITDA excludes any deal related costs or purchase accounting impacts. The transaction is expected to be immediately accretive to AMRI's non-generally-accepted accounting principles (GAAP) diluted earnings per share, with nominal synergies.

$174 million total purchase price