Pharmaceutical company Mallinckrodt plc today announced that it has sold Charlottetown-based BioVectra to international private equity firm H.I.G. Capital for $250 million USD.

“We are very excited to enter into this new chapter with H.I.G. Capital!” said Oliver Technow, President, BioVectra, “Under H.I.G Capital’s stewardship we have a fantastic opportunity to continue building and growing our business right here in Atlantic Canada.”

BioVectra, one of North America’s leading pharmaceutical contract manufacturers, employs more than 350 Atlantic Canadians at its facilities in Charlottetown, PEI, and in Windsor, Nova Scotia. BioVectra manufactures specialty chemicals and active ingredients for some of the world’s largest pharmaceutical and biologics companies as well as early stage clients.

Rory Francis, CEO of the Prince Edward Island BioAlliance, said that this is good news for the company and for Atlantic Canada’s biotech sector. “BioVectra has been on an impressive growth trajectory, and this acquisition by H.I.G. Capital will provide confidence to BioVectra’s employees and clients that will be fundamental to its future success,” said Francis.

H.I.G. Capital’s acquisition is expected to open doors for BioVectra to continue its contract development and manufacturing growth path. Since 2015, BioVectra has averaged nearly $25 million in annual investments to grow its bioscience capabilities, its team and its technologies.

This past March, the company announced a new five-year, $145-million expansion to its facilities and plans to add 150 new employees across its Windsor and Charlottetown locations. Canada’s Prime Minister Justin Trudeau was on hand to announce that expansion, which includes a $37.5-million contribution through the Government of Canada’s Strategic Innovation Fund. In 2018, BIOTECanada named BioVectra Canada’s Biotech Company of the Year.

“We are pleased that this acquisition means business as usual for BioVectra and its dedicated employees as they deliver services and products to global biopharma companies from BioVectra’s base here in Atlantic Canada,” said Francis.

The transaction, outlined in a news release issued by all three parties, is expected to close in the fourth quarter of 2019, subject to usual closing conditions.