Hovione buys Pfizer's Pharma site

Portuguese contract manufacturer Hovione has emerged as the buyer for Pfizer’s production plant in Cork, Ireland, which was put on the block last year. The site manufactures intermediates for atorvastatin.The deal includes a contract for Hovione to carry out manufacturing for Pfizer when it takes over the site. Hovione said it would retain 70-80 of the 230-odd workers at the facility.


Hovione Cork, as it will be known, will manufacture a range of Hovione’s portfolio and over the next 24 months the company will transfer products from its Loures, Portugal site. It will also validate processes for new compounds in expectation of drug approval.


It offers a third pillar to Hovione’s manufacturing network, adding 427 sq. m. to the company’s facilities in Loures and China, with around 400 sq. m. apiece. The plant can handle a large number of specialised chemistries such as hydrogenation and low temperature chemistry, and also boasts a new, €70m spray-dried formulations unit.
The deal is scheduled to be completed by early April 2009.


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Hexion's $6.5B takeover of Huntsman terminated

Chemicals maker Huntsman Corp. has ended its $6.5 billion agreement to be taken over by Hexion Specialty Chemicals Inc. and agreed to a $1 billion legal settlement with Hexion's private equity owner, Apollo Global Management.

Apollo-owned Hexion agreed to buy Salt Lake City-based Huntsman in July 2007 for $6.5 billion but then tried to back out, citing Huntsman's deteriorating finances. The $1 billion settlement includes a $325 million breakup fee to be paid as provided in the merger agreement -- which Hexion expects will be funded by Credit Suisse and Deutsche Bank -- and $425 million cash payments made by certain affiliates of Apollo.

Huntsman also will receive another $250 million in exchange for 10-year convertible notes which can be repaid in cash when they mature or in common stock. Huntsman said it expects to receive at least $500 million before the end of the year, with the rest paid by March 31.