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GCG Deal Announcement | SSG Capital Advisors, LLC advised CPL

SSG Capital Advisors, LLC advised Contract Pharmaceuticals Limited Canada (CPL) in the sale to Aterian Investment Partners.

CPL, based in Mississauga, Ontario, Canada, is a premier North American contract development and manufacturing organization (“CDMO”) specializing in non-sterile liquid and semi-solid dosage forms. CPL offers product development, commercial manufacturing, packaging and testing services under one roof and provides full-service support to customers from concept to commercialization. Renowned for its industry leadership, CPL maintains longstanding relationships with the top global pharmaceutical companies and supports its customers through its FDA and Health Canada registered facilities.

SSG was retained in November 2023 to advise CPL on strategic alternatives. Given the cross-border complexities and the highly regulated nature of the CDMO industry, SSG focused on identifying solutions to optimize the Company’s capital structure to further stabilize the business and allow CPL to achieve its growth initiatives. In December 2023, increasing liquidity pressure necessitated the Company to seek relief by commencing a CCAA proceeding and initiating an in-court sale and investment solicitation process (SISP) that would preserve value by allowing CPL to identify alternatives in a structured manner, all while under Court supervision.

Leveraging significant expertise in CDMO and the pharmaceutical sector, SSG conducted a multi-track sale and recapitalization marketing process, which attracted significant interest from strategic and financial acquirers. Multiple parties submitted offers to acquire all or a portion of the Company’s business. After discussion with numerous investor groups, the Company determined that the sale to Aterian Investment Partners maximized stakeholder value and enabled CPL to exit from CCAA and move forward with a well-capitalized business. SSG’s experience with special situations, joint U.S.-Canadian insolvencies, complex capital structures and running competitive sale processes enabled CPL to maximize value, preserve jobs, and maintain the loyalty of vendors and customers.

Aterian Investment Partners is a private equity firm that invests in industry-leading, middle-market businesses. The CPL transaction was led by Christopher Thomas, Jay Taunk, Brian Moore and Carlos Sanchez. In collaboration with management, Aterian supports investments throughout an organization, from people to processes, equipment, technology, and social governance, among others. With offices in New York and Florida, Aterian has raised cumulative equity commitments of more than $2 billion since its founding in 2009.

The transaction was led by Mark E. Chesen, Managing Director. Read the press release.

04 July 2024

SSG Capital Advisors, LLC

GCG | Geneva Capital Group