GRAND RAPIDS — An investment from a Maryland-based private equity firm will position a growing West Michigan contract pharmaceutical manufacturing firm to add needed capacity in an expanding market.
Arlington Capital Partners of Chevy Chase, Md. acquired a majority stake in Grand River Aseptic Manufacturing LLC (GRAM) of Grand Rapids, a contract manufacturer of sterile injectable products for the pharmaceutical industry.
According to a statement, the deal will allow GRAM to add capacity to serve customers in the sterile injectables market, the company said in a statement.
“With the health care network, strategic vision and capital that Arlington brings to GRAM, we look forward to expanding our offerings and capacity and continuing to invest in best-in-class technology,” GRAM CEO Tom Ross said in a statement. “Arlington has a strong track record of investing in pharmaceutical services and shares our vision for expanding GRAM’s capacity and capabilities with a focus on putting quality first.”
GRAM, which added new customers in the pharmaceutical and biotech industry over the last two years, plans to use the capital to expand its filling line and “to consistently invest ahead of the increasing demand for pharmaceutical services,” Ross said.
The company now employs more than 160 people, up from 120 workers in spring of 2016, as MiBiz previously reported. It generated more than $10 million in annual revenue as of 2015.
Terms of the deal were not disclosed. GRAM was advised on the deal by investment banking firm Fairmount Partners of Conshohocken, Pa.
GRAM was originally founded by the Van Andel Institute and Grand Valley State University, but struggled until 2013, when a group of investors led by Charter Capital Partners put $2 million investment in the company. Municipal Employees’ Retirement System, the pension fund for Michigan public employees, also invested in GRAM, leading a $9.8 million round in 2014, as MiBiz reported at the time.