Penn Pharma Agrees to Sell its Business to Packaging Coordinates Inc.

Penn Pharmaceutical Services Ltd announces an agreement for the sale of its business to Packaging Coordinators Inc (PCI) in a £127-million deal. This transaction provides a final exit for leading mid-market private equity firm LDC which invested £33 million in 2007 with completion due shortly.

The pharmaceutical manufacturers’ specialism in drug development, manufacturing and packaging services will complement Us-based PCI’s growth in clinical trial and commercial supply services in both North America and Europe.

In recent years, Penn Pharma has invested significantly in its capabilities and capacity. In 2013, Penn opened a new world-class, purpose-built contained manufacturing facility in response to market need for specialist containment solutions for the development and manufacturing of solid dose products containing highly potent compounds. In 2014, Penn launched an additional capacity expansion programme for large-scale commercial manufacturing and packaging operations. The continued investments made by Penn Pharma and the commitment to quality and customer service have ensured significant growth and has uniquely positioned the company in the specialist outsourcing market helping to grow existing business and drive significant opportunities with new customers.

PCI (headquartered in Philadelphia, PA) is a trusted partner to the world’s largest and most successful pharmaceutical firms, offering services from early-phase clinical studies through large scale Phase III/IV, commercial launch, and ongoing supply. PCI partners with manufacturers, offering insight and expertise, combined with innovative technologies and an uncompromising commitment to exceptional service and quality.

Commenting on the acquisition, Richard Yarwood, CEO, Penn Pharma said: “By combining the expertise and resources of PCI and Penn Pharma, we are able to offer exceptional outsourcing solutions to the international healthcare industry. This is a very exciting time, the specialist expertise from Penn together with the experience and global footprint of PCI will provide even more opportunities to support our customers."

Richard continued: “I would like to thank LDC for their invaluable support and strategic input over a sustained period. I would also like to thank EY who supported the transaction having been an advisor to the business since LDC’s initial investment.”