- Combination significantly strengthens SK's CDMO growth platform
- AFC provides entry into the US, the world's largest CDMO market, positioning the combination as a global leading CDMO with a strong presence across the US, Europe and Asia
- Creates substantial market synergies by combining highly complementary assets and expertise of the two companies, further accelerating growth
- SK aims to grow the combined company into a global top-tier CDMO in the next 5 years
SEOUL, South Korea, July 12, 2018 /PRNewswire/ -- SK Holdings, an investment-type holding company of SK Group, and AMPAC Fine Chemicals, a leading global provider of high-quality API development and manufacturing solutions to the pharmaceutical industry, today announced that their boards of directors have approved SK's acquisition of 100% of the ownership interests in AFC.
Established in the 1990s, AFC is a leading global supplier of high value-added APIs and intermediates in medical indications such as cancer, CNS, cardiovascular and anti-viral, having grown more than 15% a year over the past several years.
AFC is strategically located with facilities on the west, east and south coasts of the United States, providing services to a large number of pharma and biotech companies throughout the entire life cycle of their products. Its relationships with major blue chip pharmaceutical companies span more than 20 years based on its strong capabilities to manufacture high-value added products that require innovative technology solutions and stringent quality control. Through its performance and reputation for reliability, it has secured sole/preferred supplier status for a number of products that have a strong potential for growth into blockbuster products.
With the rapidly aging population, the pharmaceutical industry is set to grow at 4% annually; however, leading CDMOs continue to grow at a much faster rate of approximately 16% annually. SK Holdings has identified pharmaceuticals as a growth engine. "Pharmaceuticals is one of SK Holdings' key pillars of growth and the acquisition of AFC is an important step towards becoming a global player in the market," said Donghyun Jang, President and Chief Executive Officer of SK Holdings. Mr. Jang added, "AFC's development and manufacturing capabilities and outstanding regulatory track record, evidenced by the fact that the California plant is utilized by the FDA as a training site, are an excellent complement to SK."
Aslam Malik, Chief Executive Officer of AFC, added: "We are excited to join SK Holdings. SK and AFC are highly complementary and together we will be able to offer our customers a much broader portfolio of offerings including a global supply chain. Together we will achieve SK's goal of becoming a global top-tier CDMO."
SK Biotek, a wholly-owned subsidiary of SK Holdings, has built a strong relationship with major global pharmaceutical companies since its inception in 1998 as an API manufacturer. Its portfolio of technologies includes the world's first low-temperature continuous flow technology, which is considered best-in-class. The combination of SK Biotek's presence in Europe and Asia and AFC's robust presence in the US will create a powerful platform to become a global top-tier CDMO in the next 5 years.
*Simpson Thatcher & Bartlett LLP is acting as the legal advisor to SK Holdings for the acquisition
About SK Holdings
SK Holdings continues to enhance its portfolio value by executing long-term strategic investments with a number of competitive subsidiaries in various business areas, including energy and chemicals, information and telecommunication, and semiconductors. In addition, SK Holdings is focused on reinforcing its growth foundations through profitable and practical management based on financial stability, while raising its enterprise value by investing in new future growth businesses. For more information, please visit http://hc.sk.co.kr/en/.
About AMPAC Fine Chemicals
AFC is a U.S.-based company with demonstrated capabilities in process development, scale-up, and cGMP-compliant commercial production of active pharmaceutical ingredients and registered intermediates for pharmaceutical and biotechnology customers. Its specially engineered facilities and experienced staff allow AFC to safely produce highly energetic compounds at commercial scale. In addition, AFC's other technology platforms include production of highly potent compounds, continuous processes and industrial-scale chromatographic separation using simulated moving bed chromatography and Analytical Services to the Pharmaceutical Industry. AFC's operations are located in Rancho Cordova & El Dorado Hills CA, in La Porte, Texas and in Petersburg, VA. For more information, please visit www.ampacfinechemicals.com.
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