Actavis plc and TPG, the global private investment firm, have entered into definitive agreements, under which Actavis will divest to TPG the business currently known as Aptalis Pharmaceutical Technologies (Pharmatech)  -- a pharmaceutical outsourcing and R&D business within Actavis' subsidiary Aptalis operating in the United States, Canada and Europe (where the transaction is, in certain jurisdictions, still subject to local regulations, discussions and clearances). No other Aptalis businesses or products are included in the transaction.  No financial terms were disclosed.

Pharmatech is a leader in pharmaceutical R&D and manufacturing, with specialized capabilities in areas such as taste-masking and customized drug release and the ability to support projects from formulation through scale-up and commercial-scale manufacturing.  John Fraher, current president of Aptalis Pharmaceutical Technologies, will become CEO of the new standalone company, and will be joined by others from his management team.  The business will continue to operate integrated R&D and manufacturing facilities in North America and Europe.

"Our decision to divest the Pharmatech business is consistent with our strategic commitment to build leadership positions in our core areas of strength," said Robert Stewart, chief operating officer of Actavis.  "It will enable our industry-leading global operations team to sharpen their focus on supporting our existing global supply chain, and on preparing for the expansion of our manufacturing network with the addition of the Allergan facilities following the close of the acquisition later this year. The Pharmatech team has done an exceptional job in meeting its objectives, and I would like to thank them for the tremendous work they have done for Actavis.  The decision to divest Pharmatech will have no impact on our commitment to investing in and developing our industry-leading Medis third-party business."

"We see great demand in the market for Pharmatech's drug delivery and R&D expertise, and by launching this platform, we hope to continue to support the growth and innovation of pharmaceutical companies, both through the development of de novo products, novel value-added formulations and targeted generic products," said John Schilling of TPG.

By acquiring Pharmatech TPG intends to use the company as a platform to enter into new partnerships and make additional acquisitions to grow the business.  TPG's healthcare practice has invested approximately $6 billion in equity since 2007, and the firm has executed more than 20 carve-outs from major corporations since its founding.

"We're excited to renew our partnership with TPG, and believe the firm's experience in the pharma industry, combined with their past successes in establishing market-leaders from carve-outs, positions us well  to build a new, successful platform," said John Fraher, president of Aptalis Pharmaceutical Technologies.

The transaction is expected to close by mid-2015, and is subject to customary closing conditions and regulatory approvals.

Actavis plc, headquartered in Dublin, Ireland, is a unique specialty pharmaceutical company focused on developing, manufacturing and commercializing high quality affordable generic and innovative branded pharmaceutical products for patients around the world.