Patheon Announces Agreement to Sell Niagara-Burlington Manufacturing Business
Patheon Inc. announced that it has entered into a definitive agreement to sell its Niagara-Burlington commercial manufacturing business to Pharmetics Inc. Based in Laval, Quebec, Pharmetics is a privately owned contract manufacturer of vitamins, herbal products, supplements and over-the-counter ("OTC") pharmaceutical products.
Under the agreement, Pharmetics will acquire the assets, including equipment, facilities and land, at Patheon's facilities in Fort Erie and Burlington (Gateway Drive) in Ontario. Pharmetics will provide employment to the entire active workforce of about 250 commercial manufacturing employees at the two sites and, subject to assignment of third-party contracts, will continue to manufacture and supply all of the products currently manufactured at these sites. Collectively, the two sites currently serve 14 clients, manufacturing and packaging on their behalf about 60 over-the-counter pharmaceutical products in a range of dosage forms, including tablets, liquids and powders.
The transaction is expected to be completed on or about January 31, 2008, subject to closing conditions, including regulatory approvals and the assignment of client and other contracts. The purchase price for the business is $5.75 million plus working capital, subject to closing adjustments.
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