Albany Molecular Research Inc. (AMRI) recently announced its planned acquisition of Lodi, Italy-based Prime European Therapeuticals SpA, which operates under the name Euticals, for $358 million to grow its international presence in active pharmaceutical ingredient (API) contract development and manufacturing. At closing, the company is planning to add about $302 million in debt, including a $230 million term loan B add-on, a $63 million seller note, $39 million of assumed debt, and an expected $30 million revolver repayment, and to raise about $110 million from an equity offering, and we estimate that pro forma debt to EBITDA will be in the high-6x area. The acquisition adds scale to the API manufacturing segment, and the added leverage is not materially worse
