AMEC Expands Pharmaceutical Factory Design Business with $ 3 Billion Purchase of Foster Wheeler
The non-binding sale agreement – the other terms of which were not disclosed – was confirmed by Foster Wheeler earlier today, who said he agreed not to solicit alternative proposals until February 22. . He also said the proposed deal followed a strategic review.
Both parties are involved in oil and gas engineering, and an AMEC spokesperson told Outsourcing-pharma.com that this was the main motivation behind the proposed takeover.
“The main attraction is Foster Wheeler’s prowess in engineering, design and project management, âshe said, adding that the company employs 13,000 people worldwide.
Foster Wheeler is also involved in the design and development of pharmaceutical and biopharmaceutical manufacturing facilities, with capabilities in the design of active pharmaceutical ingredients (API) sites, pilot plants, R&D laboratories and logistics centers. .
This part of its business was expanded in January last year when the company acquired Yonkers Industries, which specializes in building and commissioning pharmaceutical plants and providing procurement services.
The deal – the financial terms of which have not been made public – added Yonkers’ offices in California, North Carolina and Puerto Rico to Foster Wheeler’s network, known as the E&C Group.
According to the company’s latest financial report, pharmaceutical industry revenue for the quarter ended Sept. 30 was $ 29 million, up from $ 13 million in the same quarter a year earlier.
At the time, Foster Wheeler said: “We believe that the global demand for energy, chemicals, minerals and pharmaceuticals will continue to grow over the long term and that our customers will continue to invest in new and improved capabilities to meet this demand.. “
According to its website, the company has been involved in the development of an API plant in Ireland for Takeda, a vaccine production site in Hungary for GSK and an oral solid dose plant for Novartis and d ‘an R&D site for Schering-Plow in Singapore.
But despite this track record of working with some of the world’s largest pharmaceutical companies, Foster Wheeler’s pharmaceutical plant design operation was not a major driver for the proposed takeover, according to the AMEC spokeswoman, who said. describes the unit as a “small part of the business. “
Foster Wheeler did not respond to a request for comment before publication.