Chinese Firm Buys American Pharmaceutical Ingredients Company

Shenzhen Hepalink Pharmaceutical Company Ltd. is paying at least USD337.5 million to acquire an American company.

Hepalink has entered into a stock purchase agreement to acquire Scientific Protein Laboratories LLC., a manufacturer and supplier of active pharmaceutical ingredients. Hepalink has agreed to acquire Wisconsin-based SPL for USD337.5 million in cash plus certain contingent payments.

With the acquisition, Hepalink will expand its presence as one of the leading suppliers of heparin worldwide, while providing the combined company with greater product development and growth opportunities in new markets for its full line of APIs, including pancreatic enzyme and heparin products.

When the transaction is completed, SPL's management will reportedly remain in place, as will its 204 employees in the United States.

Under terms of the agreement, Hepalink's wholly-owned U.S. subsidiary, Hepalink USA, will acquire 100% of the equity interest of SPL. Upon consummation of the acquisition, Hepalink will hold 100% of the equity interest indirectly through Hepalink USA.

The closing of the transaction is subject to certain conditions, including, among others, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and a clearing by the French Competition Authority, as well as other customary closing conditions. The parties will file a notice of the transaction with the Committee on Foreign Investment in the United States. The parties do not believe that any aspects of this transaction will impact US national security or have CFIUS complications. The transaction is currently expected to close during the first half of 2014.

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