SOMERSET, NJ – November 14, 2014 – Catalent, Inc. (NYSE:CTLT), the leading global provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products, has acquired Micron Technologies, a leading global provider of particle size engineering technologies. Micron Technologies was a portfolio company of Arlington Capital Partners, a Washington, D.C.-based private equity firm.
Fairmount Partners acted as financial advisor to Micron in this transaction. Fairmount Partners represented the prior shareholders and management of Micron Technologies in completing the sale of Micron Technologies to Arlington Capital Partners in March of 2013.
In an important advance in executing its strategy to provide the best drug delivery technologies and the broadest drug development expertise, Catalent will add Micron Technologies’ superior particle size engineering capabilities to its industry leading suite of drug delivery and development solutions. Catalent can now partner with more pharmaceutical innovators at the earliest stages of the drug development process with an unrivaled set of options and expertise. These range from OptiForm® API optimization and Micron Technologies particle size optimization, to expert formulation and final dose form design services, through to leading bioavailability solutions such as RP Scherer Softgel lipid systems and OptiMelt™ hot melt extrusion technologies. Catalent can support its customers all the way through scale up, clinical and commercial manufacturing of finished oral and inhaled dose forms around the world, including for highly potent compounds.
“This strategic acquisition allows Catalent to provide an unprecedented set of integrated development solutions and superior drug delivery technologies to the industry, partnering with our customers’ R&D teams earlier in the development cycle and helping them deliver better treatments to clinic and to market faster and more efficiently,” said John Chiminski, Catalent, Inc. President and CEO. “We are pleased to add Micron Technologies’ leading technologies and manufacturing expertise and welcome their highly talented management, scientific and operations teams to Catalent.”
Micron Technologies adds to Catalent’s long history of innovation and leadership in the pharmaceutical industry, with its proven and versatile portfolio of particle size reduction, micronization and milling technologies used to overcome bioavailability, stability and manufacturability challenges.
The acquisition is Catalent’s second since its IPO in July, and follows the acquisition of Redwood Bioscience, with its SMARTag™ Antibody-Drug Conjugate (ADC) technology platform, in October 2014.
Micron Technologies currently operates two state-of-the-art facilities, with excellent quality and regulatory compliance records, in Malvern, PA, and in Dartford, U.K., and employs approximately 100 people across both sites. Micron Technologies has over 25 years of experience in air jet milling micronization and is capable of processing R&D and commercial volumes at both of its sites. Micron Technologies currently supports active programs involving over 300 customers from around the world. Both facilities are equipped with advanced systems to ensure the quality, safety and total containment of highly potent and cytotoxic compounds, and provide integrated analytical services capabilities from early stage development to commercialization.
Joseph Drost, CEO of Micron Technologies, who will continue to lead this business, remarked, “We are excited to become part of Catalent, as there is a natural synergy between our organizations, with the global leader in advanced delivery technologies and development solutions now joining forces with a leading provider of particle size engineering technologies and integrated analytical services. Through access to Catalent’s global network, development expertise and innovative technologies, we can jointly provide end-to-end solutions to accelerate drug development programs and bring better treatments to patients worldwide.”
Neal McCarthy, Managing Director of Fairmount Partners, commented “It was a pleasure working with Joe Drost and his team at Micron, and Matt Altman and the Arlington Capital team, again on this important transaction. The partnership between Arlington Capital and Micron was a textbook example of a successful collaboration between talented managers and experienced professional investors: the management of Micron performed perfectly in growing the business, expanding the customer base and building on their excellent relationships with many key customers (including Catalent), and the Arlington Capital team provided the financial muscle and gave management the freedom and support to achieve great results.”
About Catalent, Inc.
Catalent, Inc. is the leading global provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products. With over 80 years serving the industry, Catalent has proven expertise in bringing more customer products to market faster, enhancing product performance and ensuring reliable clinical and commercial product supply. Catalent employs approximately 8,000 people, including over 1,000 scientists, at nearly 30 facilities across 5 continents, and in fiscal 2014 generated more than $1.8 billion in annual revenue. Catalent is headquartered in Somerset, NJ. For more information, visit www.catalent.com.
About Micron Technologies
Micron Technologies, a portfolio company of Arlington Capital Partners, is a leading global provider of particle size engineering technologies for the pharmaceutical industry. Micron Technologies has helped overcome bioavailability, stability and manufacturability challenges across hundreds of oral and inhaled drugs for over 25 years through its leading, proven and versatile portfolio of particle size reduction, micronization and milling technologies. Micron Technologies employs approximately 100 people across 2 facilities in the U.S. and the U.K. Micron Technologies is headquartered in Malvern, PA. For more information, visit www.microntech.com.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-based private equity firm with $1.5 billion of committed capital focused on middle market investment opportunities in growth industries including: healthcare services, aerospace/defense, government contracting, business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field. For more information, visit www.arlingtoncap.com.
About Fairmount Partners
Fairmount Partners is one of the largest investment banking groups in the Mid-Atlantic region. The firm specializes in advising middle-market growth companies with mergers and acquisitions, capital raising and strategic advice. Fairmount offers deep expertise in the Healthcare Services and Technology, Information Technology Services, Technology and Software and Industrial and Consumer Products markets. Fairmount has completed more than 140 transactions throughout North and South America, Europe, Asia and Australia since its inception in June 2003. For more information, visit www.fairmountpartners.com.
Principals of Fairmount Partners acted as advisors to Micron in this transaction.