Ashland acquires Pharmachem Laboratories for $660 million

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In Kentucky, Ashland Global Holdings has signed a definitive agreement to acquire Pharmachem Laboratories, a producer of custom and branded nutritional and fragrance products for $660 million.

Pharmachem reports annual revenues of approximately $300 million. The company has 14 manufacturing plant in the United States and Mexico, including North America’s largest custom extraction facility for natural ingredients. It has “strong capabilities in extraction, refining, granulation, spray drying, turnkey packaging solutions, fermentation, and fermentation purification,” according to Ashland.

The deal is expected to close by the end of the June quarter. Ashland expects annual cost synergies of about $10 million. “We have the opportunity to create something unique in our industry by combining Pharmachem’s custom manufacturing capabilities with Ashland’s formulation knowledge and excipients expertise,” says Pharmachem CEO Colin MacIntyre.