Kent-Athlone Pharma Group divests Athlone Laboratories to Gaelic Laboratories

Kent-Athlone Pharma Group divests Athlone Laboratories to Gaelic Laboratories

• For Kent-Athlone Pharma Group, the divestment is a key strategic step as it concludes its strategic repositioning to focus fully on developing, licensing, launching, and commercialising Value-Added Medicines as an asset-light, European specialty pharmaceutical company.

• Going forward, Kent-Athlone Pharma Group will be better positioned to capitalise on its commercial strengths, with an experienced team, broad portfolio of differentiated products, and deep pipeline of margin accretive, late-stage assets to fuel faster growth.

• Gaelic Laboratories is committed to the future of the Athlone Laboratories site, expanding production and employment, and ensuring a sustainable, Europe-based supply chain for foundational antibiotics.

• Kent-Athlone Pharma Group will continue to work closely with its global network of Partners and CMOs (including with Athlone Laboratories) to supply its key territories.

• The supply relationship will continue as both parties have committed to a long-term partnership in the manufacturing and marketing of critical antibiotics.

LONDON/DUBLIN – Kent-Athlone Pharma Group, a European specialty pharmaceutical company, today announced the signing and closing of an agreement for the divestment of the entire issued share capital of Athlone Laboratories Limited, an Irish manufacturer of oral antibiotic finished dosage forms (FDFs), from Linnum Holdings (a group company within Kent-Athlone Pharma Group) to Gaelic Laboratories.

Athlone Laboratories currently manufactures semi-synthetic penicillins (SSPs) with expertise in critical oral antibiotic formulations, including amoxicillin capsules and powders for oral suspension (POS), flucloxacillin capsules and POS, and penicillin tablets. The Athlone Laboratories site currently serves customers in Ireland, the United Kingdom, Europe (Netherlands, Belgium, Germany), and other international markets. 

Kent-Athlone Pharma Group will continue to market the products manufactured and supplied by Athlone Laboratories (now part of Gaelic Laboratories) primarily in the UK and Ireland. For clarity Athlone Pharmaceuticals, a separate legal entity, is not impacted and remains part of Kent-Athlone Pharma Group.

Terry Petersen, Chief Executive Officer of Kent-Athlone Pharma Group, said: “This transaction represents another key milestone, as we continue to execute on our mid-term growth strategy as an asset-light, European specialty pharmaceutical company with a focus on commercialising Value-Added Medicines. We look forward to building on our strong relationship with the Athlone Laboratories team, now as part of Gaelic Laboratories, as a key third-party customer.”

Renée Hoff, Investment Director, Duke Street, said: “We are delighted to see this strategic divestment to a great partner in Gaelic Laboratories. This divestment forms a core part of the investment thesis for Kent-Athlone Pharma Group, meaning the business can now continue to drive faster growth and higher margins by successfully developing, licensing, launching and commercialising Value-Added Medicines with even greater focus.”

Brian Morrissey, Managing Director of Gaelic Laboratories, said: “We are delighted to welcome Athlone Laboratories into the Gaelic Laboratories family. The site has a long and proud track record of manufacturing excellence in oral beta-lactam antibiotics, and we are committed to building on that strong foundation. Our investment will focus on strengthening capacity, enhancing technical capabilities, and supporting the highly skilled team in Ballymurray.

In an era where resilient, Europe-based supply chains are more important than ever, this acquisition ensures continued security of supply for essential antibiotics relied upon by patients and healthcare systems across the region. We look forward to working closely with our partners to deliver high-quality medicines with reliability, integrity, and long-term sustainability at the core of everything we do.”

Customary regulatory approvals and closing conditions have been received/met. Financial details have not been disclosed. The transaction has been signed and completed.

DLA Piper acted as legal advisor to Kent-Athlone Pharma Group.

About Kent-Athlone Pharma Group
Kent-Athlone Pharma Group is a privately owned asset-light, European specialty pharmaceutical company with offices in the UK (Corporate HQ) and Ireland (EU office). The company is focused on developing, licensing, launching, and commercialising Value-Added Medicines to meet the needs of customers and patients in Europe, and beyond, working closely with our network of global partners. 

About Athlone Laboratories 

Athlone Laboratories is a specialised oral dose beta-lactam manufacturing plant based in Ballymurray, Co. Roscommon, Ireland, established in 1974. The company is a leading developer and manufacturer of oral dose beta-lactams, which supplies a range of international partners, including Kent-Athlone Pharma Group. 

About Gaelic Laboratories

Gaelic Laboratories is a world-class manufacturer of Beta-Lactam (penicillin) products in tablet, capsule and powder for suspension form. Established in Ireland in 2022, and with newly upgraded facilities, the company manufactures its own Beta-Lactam products (sold under the Gaelic Laboratories brand), as well as offering contract manufacturing and packaging services for markets across the EU, UK, the Middle East and North Africa.