The $250-million US sale of Charlottetown-based BioVectra to an international private equity firm is good news for its 350 employees, says company president Oliver Technow.
BioVectra manufactures specialty chemicals and active ingredients for some of the world's largest pharmaceutical companies.
It has four facilities on P.E.I. and one in Windsor, N.S.
"For those employees it means that obviously first and foremost we will continue on our successful growth path and we do have right now several high profile expansion projects on the run," Technow said.
In March, BioVectra announced a new five-year, $145-million expansion to its facilities and plans to add 150 new employees across its Charlottetown and Windsor locations.
Technow said he does not expect any layoffs as a result of the sale.
"I expect nothing but positives from this transaction."
Sale expected to close in 4th quarter
Ownership is expected to transfer from the pharmaceutical company Mallinckrodt to H.I.G. Capital sometime in the fourth quarter of 2019, subject to closing conditions, Technow said.
I expect nothing but positives from this transaction. — Oliver Technow
"We have been really fortunate over the last four or five years with Mallinckrodt pharmaceuticals and their support they have offered us to execute on our plan and execute on our strategic investments and now this is a wonderful new opportunity to continue on this path."
In a news release, H.I.G. Capital said it is excited to support BioVectra's "exceptional leadership and highly dedicated employees."
"The company is well positioned to capitalize on growing demand for their services," said H.I.G. Capital managing director Mike Gallagher.
'Impressive growth trajectory'
Rory Francis, CEO of the Prince Edward Island BioAlliance, said the sale is good news for the company and for Atlantic Canada's biotech sector.
"BioVectra has been on an impressive growth trajectory, and this acquisition by H.I.G. Capital will provide confidence to BioVectra's employees and clients that will be fundamental to its future success," he said in a statement.
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