SK Holdings, the global investment arm of the SK Group, has acquired AMPAC Fine Chemicals (AFC), a US-based custom manufacturer of pharmaceuticals.
SK Holdings announced on July 12 that its board of directs approved the acquisition of a 100% of the ownership interests in AFC, a bio and pharmaceutical contract development and manufacturing organization (CDMO) in the US. A CDMO is a contract manufacturer equipped with its own production technology.
Established in 1990 in California, AFC has been producing pharmaceutical ingredients used in anticancer drugs and central nervous system and cardiovascular treatments, rapidly growing more than 15% a year. The acquisition price is estimated at around 700 to 800 billion won (US$630 million to US$720 million). This is the first time a Korean company has acquired a global pharmaceutical manufacturer.
With its acquisition of AFC, SK is evaluated to have acquired a production base in the US, a major pharmaceutical market along with Europe, while securing its production capacity to compete with global CDMO companies. "The Bio and pharmaceuticals sector is one of the future growth engines, and the acquisition of AFC will be a turning point in expanding the global market,” said Jang Dong-hyun, president and chief executive officer of SK Holdings.