Bulk naproxen
This article was originally published in The Tan Sheet
Executive Summary
AlliedSignal acquires second largest manufacturer of bulk naproxen, Lugano, Switzerland-based Pharmaceutical Fine Chemicals, the chemical company's third purchase in the area of pharmaceutical active ingredient production in the past three years. PFC had 1997 sales of $110 mil. AlliedSignal is acquiring the firm from a management and investment group headed by Donaldson, Lufkin & Jenrette's Merchant Banking Group. PFC was founded in 1992 from the combination of two Italian chemical producers, Alfa Chemicals and ICFI. The start-up was led by PFC's current CEO, Pietro Stefanutti. The management buy-in was financed through the British investment group, 3i, which later contributed to the expansion of PFC by acting as the investment banker for the 11 bil. Lira ($62.7 mil.) purchase of a Roche/Syntex plant in the Bahamas, bringing naproxen production into PFC's line. AlliedSignal's recent acquisition activity and the six-year ownership/investment history of PFC indicate an active market for pharmaceutical production services...