Siegfried, a leading global CDMO for the pharmaceutical industry, has signed binding agreements to acquire the drug substance businesses of Noramco Group and Extractas Bioscience from an affiliate of SK Capital Partners. The deal adds three high-quality small-molecule manufacturing sites and approximately 400 employees to Siegfried’s portfolio:

 

The acquisition is a key milestone in Siegfried’s EVOLVE+ strategy, boosting the company’s presence and capacity in the US, the world’s largest pharmaceutical market.

 

Siegfried plans to grow its exclusive synthesis business in the US by optimizing controlled substance capacity at the Wilmington and nearby Pennsville sites. Paired with Purisys’ early-phase development capabilities and Extractas Bioscience’s extraction expertise, the acquisition strengthens Siegfried’s integrated offerings and sets the stage for accelerated growth and improved profitability.

 

Marcel Imwinkelried, Chief Executive Officer, said: “This transaction marks a decisive next step in the execution of our EVOLVE+ strategy and is aligned with our highly selective, disciplined value accretive approach to M&A. 

 

"By adding exceptional US-based capabilities, we will become even more attractive to both existing and new customers, creating new opportunities to accelerate profitable growth. The combined capacity and expertise of the three sites strengthen our position as a leading CDMO for small-molecule drug substances, and I look forward to fully realizing this value together with our new colleagues.”

 

The deal is valued at below 10x Enterprise Value / EBITDA and will be financed through a combination of existing and new debt instruments. Subject to customary closing conditions, the transaction is expected to close later this year.