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HIG Capital completes sale of AMPAC Fine Chemicals

Private equity investment firm HIG Capital (HIG) has completed the sale of its portfolio company AMPAC Fine Chemicals (AFC) to SK Holdings Co Ltd.

Based in Rancho Cordova, California, AFC is a global supplier of high value-added active pharmaceutical ingredients and intermediates used in treating diseases such as cancer, CNS disorders and various viral infections. AFC is strategically located with four facilities within the United States and has over USD200 million of revenue. The Company provides services to a large number of blue chip pharmaceutical and biotech companies throughout the entire life cycle of their products.
HIG acquired AFC in February 2014 as part of American Pacific Corporation. AFC’s sister company, AMPAC Specialty Chemicals, was sold to Huntsman Family Investments in December 2015.
Fraser Preston, a Managing Director of HIG, says: “AFC is a terrific organisation with exceptional leadership. Dr Aslam Malik and his team have transformed the business since we acquired it – adding technical capabilities, diversifying the customer base, building an expanded and flexible manufacturing footprint and delivering industry leading organic growth every year since our acquisition.
“AFC has delivered an outstanding return for HIG and its investors. Partnering with a respected global organisation like SK Holdings represents a terrific next step for AFC’s customers, partners, and employees, and we look forward to the Company’s continued success.”
Aslam Malik, CEO of AFC, adds: “HIG has been thoughtful and supportive of AFC since our partnership began several years ago. In addition to supporting AFC with growth capital; allowing us to expand our Rancho Cordova, CA facility; start AMPAC Analytical; restart operations at our La Porte, TX site; and acquire a state-of-the-art plant in Petersburg, VA, HIG has provided us with the freedom and flexibility needed to grow the business and served as a dynamic thought partner to our senior leadership team. Thanks to our affiliation with HIG, AFC is a much bigger and a more diversified company today than it was in 2014 – our customer base is broader and our relationships with them are deeper. As a result, our development pipeline is bigger than it has ever been.”

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