Mayne Pharma Group Ltd. has entered into a binding agreement to acquire Metrics Inc., a privately-owned provider of contract development services to the pharmaceutical industry that also develops and manufactures niche generic drugs. Metrics is based in Greenville, North Carolina.

Consideration for the acquisition will comprise an upfront payment of $105 million plus further earnout payments of up to $15 million based on Metrics’ performance for the 12 months ended June 30, 2013.

Closing of the acquisition remains subject to material conditions, including completion of financing arrangements by Mayne Pharma and there being no material adverse event in relation to Metrics. Closing is also subject to the approval of Metrics’ shareholders; however, holders of a majority of Metrics’ capital stock have already agreed to vote in favor of the transaction.

Metrics will continue to be led by its current senior management team, and will continue to operate out of its existing Greenville facilities. The only change to Metrics’ business will be new access to enhanced resources, operational best practices and intellectual capital that will provide significant upside and opportunity for increased levels of success for Metrics, Mayne Pharma and the customers the two companies serve.

Date: October 8, 2012
Source: Mayne Pharma Group Ltd.