W. R. Grace & Co. has agreed to acquire the Fine Chemistry Services business of Albemarle Corporation for approximately $570 million, including $300 million paid in cash at closing and $270 million funded through the issuance to Albemarle of non-participating preferred equity of a newly created Grace subsidiary.
The acquisition significantly strengthens and expands Grace’s existing pharma portfolio. FCS adds a portfolio of high-value products and services with complementary analytical, regulatory and manufacturing services to Grace’s existing pharma portfolio focused on chromatographic resins, formulation excipients and drug delivery, and pharmaceutical intermediates and active pharmaceutical ingredients (APIs).
“This acquisition is strategically and financially compelling and aligns perfectly with our strategy of building a higher growth portfolio by extending our existing capabilities into higher-growth, high-value end markets,” said Hudson La Force, Grace’s president and chief executive officer. “Combining these businesses strengthens our innovation and manufacturing capabilities and gives us scale that will further strengthen our customer value proposition and drive meaningful financial results for our shareholders. FCS’ impressive talent, customer-focused culture, track record of innovation and commitment to operating excellence align well with the Grace Value Model. We look forward to working with our customers to deliver high-value solutions that span every stage of their development cycle.”
Goldman Sachs & Co. LLC and Moelis & Company LLC are serving as financial advisors and Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal counsel to Grace on this transaction. Goldman Sachs, Moelis and Wachtell, Lipton, Rosen & Katz are serving as advisors to Grace with its ongoing review of strategic alternatives.