TORONTO, Dec. 6 /CNW/ - Patheon Inc. (TSX: PTI) today announced that it
has entered into a definitive agreement to sell its Niagara-Burlington
commercial manufacturing business to Pharmetics Inc. Based in Laval, Quebec,
Pharmetics is a privately owned contract manufacturer of vitamins, herbal
products, supplements and over-the-counter ("OTC") pharmaceutical products.
Under the agreement, Pharmetics will acquire the assets, including
equipment, facilities and land, at Patheon's facilities in Fort Erie and
Burlington (Gateway Drive) in Ontario. Pharmetics will provide employment to
the entire active workforce of about 250 commercial manufacturing employees at
the two sites and, subject to assignment of third-party contracts, will
continue to manufacture and supply all of the products currently manufactured
at these sites. Collectively, the two sites currently serve 14 clients,
manufacturing and packaging on their behalf about 60 over-the-counter
pharmaceutical products in a range of dosage forms, including tablets, liquids
"Once the decision was made to seek a buyer for our OTC business, we had
three key priorities: continuity of service for our clients, continuity of
employment for our staff, and the sale of the facilities to a purchaser who
could capitalize on the strategic value of these assets," said Riccardo
Trecroce of Patheon Inc. "We are very pleased that in this transaction with
Pharmetics, all three of these objectives will be achieved."
"These sites will provide Pharmetics with conveniently located, high-
quality capacity and expertise with which to expand our business and serve our
growing client base," said Ephriam Kandelshein, Co-President, Pharmetics Inc.
The transaction is expected to be completed on or about January 31, 2008,
subject to closing conditions, including regulatory approvals and the
assignment of client and other contracts. The purchase price for the business
is $5.75 million plus working capital, subject to closing adjustments.
PricewaterhouseCoopers Corporate Finance Inc. advised Patheon Inc on the
Patheon (TSX:PTI; www.patheon.com) is a leading global provider of drug
development and manufacturing services to the international pharmaceutical
industry. Patheon operates a network of 14 facilities in the United States,
Canada and Europe, employing more than 5,100 people and serving a client base
of more than 250 pharmaceutical and biotechnology companies.
Pharmetics is a major manufacturer of vitamins, supplements and OTC
For further information:
For further information: Mr. Riccardo Trecroce, Patheon Inc., Tel: (905)
812-6877, Email: email@example.com; Mr. John Bell, Chief Financial
Officer, Patheon Inc., Tel: (905) 812-6812, Email: firstname.lastname@example.org;
Mr. Ephriam Kandelshein, Co-President, Pharmetics, (450) 682-8580, ext. 2228,