ANI Pharma Acquires WellSpring Pharma For $18 Mln - Quick Facts

(RTTNews) - While reporting its second-quarter financial results today, ANI Pharmaceuticals Inc. (ANIP) said it has acquired WellSpring Pharma Services Inc. for $18 million in cash, to expand its contract manufacturing business.

WellSpring Pharma is a contract development and manufacturing organization or CDMO, located near Toronto in Oakville, Canada.

With an employee base of about 100, WellSpring is a CDMO with capabilities in solid oral, semi-solids and liquids that operates out of a 100,000 square foot site that ANI acquired as part of the transaction.

ANI Pharmaceuticals noted that WellSpring has a diverse customer base, focused on both brand and generic drug products.

The company currently manufactures 17 commercial products for 11 different customers and is assisting customers on 13 additional products that are in development or awaiting FDA approval. The site manufactures drug product for both the U.S. and Canadian prescription drug markets and has substantial capacity.

ANI said it anticipates substantial synergy in the WellSpring acquisition.

WellSpring currently generates $15 million to $20 million in annual revenues. ANI expects the acquisition will be accretive to its adjusted EBITDA, beginning in 2019.