EAST RUTHERFORD, N.J., Oct. 20 /PRNewswire-FirstCall/ -- Cambrex
Corporation (NYSE: CBM) announced today that it signed a definitive stock
purchase agreement to sell two non-strategic facilities within its Human
Health segment to a holding company controlled by International Chemical
Investors II S.A. (ICIG) of Luxembourg.
The facilities, which are located in Cork, Ireland and Landen, Belgium,
manufacture small molecule active pharmaceutical ingredients (API) and
advanced intermediates. They reported combined sales of $40.4 million and
an operating loss of $29.8 million during fiscal 2005. The 2005 operating
loss included charges of $24.8 million for the impairment of goodwill and
long- lived assets. Sales for the first six months of 2006 were $21.9
million with an operating loss of $0.2 million.
"As part of our evaluation of strategic alternatives, we identified the
divestiture of Cork and Landen as an initial step in our effort to
streamline and strengthen the Human Health business," said James Mack,
Chairman, President & CEO of Cambrex. "This transaction will allow us to
focus our Human Health investment in our three largest facilities where we
have strong market positions, differentiating technologies such as high
potency manufacturing and tastemasking expertise, and proprietary products
including DEA controlled substances and niche generic APIs. We believe that
under ICIG's leadership and experience in this industry bringing to bear
synergies with their other activities, combined with the dedicated
workforce at the sites, the new owners will achieve the full turnaround in
the foreseeable future."
As a result of this transaction, Cambrex expects to report a non-cash
charge of approximately $30 million in the fourth quarter of 2006. This
transaction is expected to close within 30 days.
In February 2006, Cambrex announced that it had retained Bear Stearns &
Co, Inc. to act as advisors to the Board of Directors in the analysis and
consideration of strategic alternatives to maximize shareholder value and
this process is continuing.
About Cambrex Human Health
The Human Health segment of Cambrex is a premier provider of products
and services to the global life science industry. Its product portfolio
includes active pharmaceutical ingredients for branded and generic drugs,
advanced intermediates for branded drugs, and specialty intermediates for
animal health, x-ray diagnostics, and other applications. Human Health also
provides broad service offerings in the areas of custom development and
contract manufacturing.
About Cambrex
Cambrex is a global, diversified life sciences company dedicated to
providing products and services to accelerate and improve the discovery and
commercialization of human therapeutics. The Company employs approximately
2000 worldwide. For more information, please visit http://www.cambrex.com.
About International Chemical Investors
International Chemical Investors is an investment group focusing on
mid- sized chemical businesses, preferably subsidiaries of large
corporations, which are considered non-core, with leading positions in
niche markets, operating in competitive environments.
Cambrex Forward Looking Statements
This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and Rule
3b-6 under The Securities Exchange Act of 1934, including, without
limitation, statements regarding expected performance, especially
expectations with respect to sales, research and development expenditures,
earnings per share, capital expenditures, acquisitions, divestitures,
collaborations, or other expansion opportunities. These statements may be
identified by the fact that words such as "expects," "anticipates,"
"intends," "estimates," "believes" or similar expressions are used in
connection with any discussion of future financial and operating
performance.
The forward-looking statements contained herein are based on current
plans and expectations and involve risks and uncertainties that could cause
actual outcomes and results to differ materially from current expectations
including but not limited to, global economic trends, pharmaceutical
outsourcing trends, competitive pricing or product developments, government
legislation and/or regulations (particularly environmental issues), tax
rate, interest rate, technology, manufacturing and legal issues, changes in
foreign exchange rates, performance of minority investments, uncollectible
receivables, loss on disposition of assets, cancellation or delays in
renewal of contracts, and lack of suitable raw materials or packaging
materials, the possibility that the value of the acquisition of
PermaDerm(TM) cultured skin may not be realized or that our plans to obtain
a Humanitarian Device Exemption, completion of clinical trials and
commercialization of PermaDerm cultured skin in the United States may not
be successful, the Company may not receive regulatory approval for its
products, and the outcome of the evaluation of strategic alternatives.
For further details and a discussion of these and other risks and
uncertainties, investors are cautioned to review the Cambrex 2005 Annual
Report on Form 10-K, including the Forward-Looking Statement section
therein, and other filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
SOURCE Cambrex Corporation
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Related links:
http://www.cambrex.com
http://www.prnewswire.com/comp/134219.html /
CONTACT:
Robert Thomson, Director, Investor Relations
of Cambrex, +1-201-804-3047, robert.thomson@cambrex.com; or Dr.
Achim Riemann, achim.riemann@ic-investors.com or Patrick
Schnitzer, patrick.schnitzer@ic-investors.com, Managing Directors
of International Chemical Investors II S.A., +49-69-506-999-0
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