Backed by a recent capital infusion and experiencing rapid growth, Grand River Aseptic Manufacturing Inc. plans to quadruple capacity with the development of a new facility south of downtown Grand Rapids.
The fast-growing pharmaceutical contract developer and manufacturer of injectable drugs has agreements to acquire two parcels totaling 1.5 acres, one of them from Grand Valley State University on Butterworth Street. The company expects to close on the land acquisitions within 90 days and begin work this summer on a facility of up to 60,000 square feet.
The expansion will cost between $35 million and $40 million and accommodate continued dramatic growth in the company President and CEO Tom Ross said.
“We really need this expansion to be able to grow in the future,” Ross said. “This will really set us up to handle growth for the next 10 to 15 years.”
The seven-year-old Grand River Aseptic Manufacturing, or GRAM, has been growing rapidly in recent years. The company in 2016 ranked 572nd nationally and ninth in Michigan on Inc. Magazine’s list of the 5,000 fastest-growing companies.
From 2013 to 2016, GRAM’s revenues grew 791 percent. Employment has grown from 16 employees in 2011 to more than 160 today.
The new facility should begin operations in July 2020, Ross said. It will take a year to construct, plus another year to validate production equipment, he said.
Once open, the facility will become GRAM’s third. The company has facilities on Front Avenue and Godfrey Street. Both are less than a mile away from the site of the new facility.
GRAM’s expansion follows a major investment in the company last November by private equity firm Arlington Capital Partners of Chevy Chase, Md. The investment re-capitalized GRAM for expansion and further high growth.
Arlington Capital Partners is providing the capital GRAM needs to take on the expansion, Ross said.