Impax Labs acquires Tower Holdings for $700 million

HAYWARD, Calif. — Impax Labs last week announced the execution of a definitive agreement under which Impax will acquire Tower Holdings, including operating subsidiaries CorePharma and Amedra Pharmaceuticals, and Lineage Therapeutics for $700 million in cash, subject to certain customary purchase price adjustments. 

 

The privately-held companies being acquired specialize in the development, manufacture and commercialization of complex generic and branded pharmaceutical products. The transaction will provide Impax with a profitable and growing commercialized portfolio of products that are expected to generate full year 2014 revenues of approximately $215 million to $225 million. 

 

"This transaction is an important step forward in executing our plan to drive growth and create value through strategic acquisitions that enhance our existing strategies," stated Fred Wilkinson, president and CEO of Impax. "The companies will add a growing, highly profitable, commercial portfolio of generics as well as a lead product in a new brand franchise, which will enhance our brand division and enable us to utilize our brand commercial infrastructure more efficiently. The acquisition also adds a branded and generic pipeline that includes a number of near-term opportunities. In addition, Impax will gain an established campus in New Jersey focused on R&D, manufacturing, packaging and supply chain management. Further, this accretive transaction will move Impax to a more efficient capital structure, while also preserving our ability to pursue additional external strategic growth opportunities."

 

Christopher Worrell, CEO Tower Holdings, Amedra and Lineage, said: "We are pleased with the progress we have made across our companies with an emphasis on the successful implementation of a Quality Improvement Program, which resulted in recent product approvals from the U.S. Food and Drug Administration. Both Impax and the companies have a proven record of developing high value specialty products, and we look forward to being a critical contributor to the future growth strategy and value creation for Impax."