Private equity firm SK Capital has reached a deal to acquire the active pharmaceutical ingredients (API) business owned by Perrigo Co. plc (NYSE: PRGO) for approximately $110 million. The divestiture comes as Perrigo plans to focus on its core business.

"Today's announcement furthers the strategic review process announced when I became CEO,” states Perrigo CEO John Hendrickson. “Actions taken as part of this review process have enabled us to simplify, focus and execute on our core businesses.” Hendrickson adds that Perrigo is continuing to look at “capital deployment opportunities” as well.

Founded in 1887, Perrigo is a Dublin, Ireland-based healthcare company that distributes “affordable” healthcare products including store branded over-the-counter medicines. The seller also supplies infant formulas for the store brand sector. Perrigo’s API business, which is based in Israel, is being renamed to Wavelength Pharmaceuticals as part of SK Capital’s deal.

Wavelength Pharmaceuticals develops generic APIs and finished dose forms for a blue-chip customer base. The target also has operations in the U.S. and India. "We believe," according to SK Capital managing director Aaron Davenport, "that Wavelength represents a strong platform for further add-on and transformational acquisitions and are already actively pursuing several opportunities. "

New York-based SK Capital invests between $100 million and $200 million in businesses in the materials, chemicals and healthcare sectors. The firm manages approximately $1.9 billion in assets. In June, SK Capital bought two chemical manufacturing companies called Western Inc. and Tri-Tex Co. In 2016, SK Capital bought a majority stake in ingredients producer Niacet Corp. The firm also backed wine ingredients supplier AEB Group and pharmaceutical chemicals provider Halo Pharmaceutical in 2015.

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