October 29, 2012 / 12:50 PM / in 5 years

Patheon to buy Banner Pharmacaps for $255 million

2 Min Read

(Reuters) - Contract drugmaker Patheon Inc PTI.TO said it would buy pharmaceutical company Banner Pharmacaps, which focuses on gelatin-based oral drug delivery technology, for $255 million.

North Carolina-based Banner, a unit of Dutch food products company Vion NV, has labs and manufacturing plants in the Netherlands, Canada and Mexico.

Patheon, which provides contract development and manufacturing services to pharmaceuticals companies, partnered with Colombian softgel capsule maker Procaps SA in January to manufacture a line of softgel in North America, Europe and Asia.

Patheon also said on Monday its full-year revenue would be between $740 million and $745 million. It had earlier said revenue would exceed $735 million.

The company said it expects the Banner deal to close by the end of the year.

UBS Securities Llc advised Patheon on the deal, while Rabobank International and Rothschild Inc advised Vion NV.

Patheon said it would take a non-cash charge of $37 million in the fourth quarter, related to debt refinancing and the Banner acquisition, it said in a statement.

The company also said it received financing commitments of about $650 million from Morgan Stanley (MS.N), UBS, Credit Suisse and KeyBank.

The company had long-term debt of $310.4 million as of July.

Reporting by Krithika Krishnamurthy in Bangalore; Editing by Don Sebastian

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