Patheon Purchases Plant In Italy

N/Assaugua, Ontario-based <%=company%> , recently announced that it has signed a letter of intent to purchase a plant presently owned by the Roche Group.

The 300,000 square foot facility is located near Milan, Italy, and presently employs 234 people in the fully integrated manufacture of sterile/injectable dosage forms, along with solid, semi-solid, and powder forms. In addition, the plant offers pharmaceutical development capabilities for both sterile/injectable and solid dosage forms.

Patheon's Ontario, Canada facility.

The deal stipulates that the current management and staff of the Milan plant will stay at the facility, which was built in 1976. Due diligence will be completed by mid-August with an anticipated closing by late October subject to regulatory approvals.

The acquisition is expected to be accretive to earnings in year one and cash flow positive in year two. Most of the financing will be derived through bankers and the vendor.

Patheon hopes to mirror the success it had when it acquired Roche's Syntex Court site in 1997. In that case, the company increased operating capacity by 35% in two years.

Patheon, Inc. is a provider of manufacturing and drug development services in the pharmaceutical outsourcing sector.

For more information: <%=company%> , 2100 Syntex Court, Mississauga, Ontario, L5N 7K9 Canada. Tel: 1-888-Patheon.