Profile: American Pacific Corporation (APFC.O)

American Pacific Corporation (AMPAC), incorporated in December 1980, is a manufacturer of fine chemicals, specialty chemicals and propulsion products within its focused markets. The Company supplies active pharmaceutical ingredients and advanced intermediates to the pharmaceutical industry. For the aerospace and defense industry, the Company provides specialty chemicals used in solid rocket motors for space launch and military missiles. The Company also designs and manufactures liquid propulsion systems, valves and structures for space and missile defense applications. The Company produces clean agent chemicals for the fire protection industry, as well as electro-chemical equipment for the water treatment industry. The Company is the producer of ammonium perchlorate (AP), which is the predominant oxidizing agent for solid propellant rockets, booster motors and missiles used in space exploration, commercial satellite transportation and national defense programs. On October 1, 2008, the Company acquired Marotta Holdings Limited (renamed Ampac ISP Holdings Limited) and its wholly owned subsidiaries (collectively AMPAC ISP Holdings). The Company’s operations consist of four business segments: Fine Chemicals, Specialty Chemicals, Aerospace Equipment and Other Businesses.

Fine Chemicals

The Company’s Fine Chemicals segment is a custom manufacturer of active pharmaceutical ingredients (APIs) and registered intermediates. The pharmaceutical ingredients the Company manufactures are used by its customers in drugs with indications in three areas: anti-viral, oncology and central nervous system. The Company operate in compliance with the United States food and drug administration’s (the FDA) current good manufacturing practices (cGMP) and other regulatory agencies, such as the European Union’s European Medicines Agency (EMEA) and Japan’s Pharmaceuticals and Medical Devices Agency (PMDA).

Specialty Chemicals

The Company’s Specialty Chemicals segment is engaged in the production of AP, which is a type of perchlorate. In addition, the Company produces and sells sodium azide, a chemical used in pharmaceutical manufacturing, and Halotron, a series of clean fire extinguishing agents used in fire extinguishing products ranging from portable fire extinguishers to total flooding systems. During the fiscal year ended September 30, 2009 (fiscal 2009), the Company’s programs were the Space Shuttle Reusable Solid Rocket Motor (RSRM), the Guided Multiple Launch Rocket System (GMLRS) and the Atlas family of commercial space launch vehicles.

Aerospace Equipment

The Company’s Aerospace Equipment segment is a manufacturer of monopropellant and bipropellant liquid propulsion systems and thrusters for satellites, launch vehicles and interceptors. The Company’s products are utilized on a range of satellite and launch vehicle programs, such as Space Systems/Loral’s 1300 series geostationary satellites. The AMPAC ISP Holdings business has two locations, Dublin, Ireland and Cheltenham, U.K. Combined with the Company’s in-space propulsion operations in Westcott, U.K., these operations constitute AMPAC ISP Europe. AMPAC ISP Europe designs, develops and manufactures high performance valves, pressure regulators, cold-gas propulsion systems and precision structures for space applications in the European space market. These products are used on a range of satellites and spacecraft, as well as on the Ariane five launch vehicle.

Other Businesses

The Company’s Other Businesses segment contains its water treatment equipment and real estate activities. The Company’s water treatment equipment business designs, manufactures and markets electro-chlorination systems for the disinfection of water streams, the control of noxious odors and the treatment of seawater. The Company’s real estate activities are not material.

The Company competes with SAFC, Group Novasep SAS, Helsinn, OmniChem, Cambrex Corp., ZaCh Systems, Diacel Chemical Industries, Ltd., Orgomol, DuPont, 3M, ISP, GenCorp Inc., EADS Astrium and IHI.