NEW YORK CITY (dpa-AFX) - Bristol Myers Squibb (BMY) announced Friday its agreement to sell manufacturing facility in East Syracuse, New York to LOTTE Corp., a holding company of Seoul, Korea -based LOTTE Group. The financial terms of the deal were not disclosed.
The East Syracuse site will serve as the LOTTE Center for North America Operations for LOTTE's new biologics contract development and manufacturing organization or CDMO business in the United States.
The companies anticipate completing the transaction by the second half of fiscal 2022, subject to receipt of regulatory approvals and the satisfaction of other closing conditions.
The East Syracuse site will continue to operate as part of Bristol Myers Squibb's manufacturing network until the deal closure.
Upon closing, LOTTE will acquire the East Syracuse site's operations and assets, which include the property, plant and equipment, as well as a workforce with technical capabilities and expertise.
Following the closing of the transaction, LOTTE, under a newly-established CDMO relationship, will manufacture product for Bristol Myers Squibb from the East Syracuse facility. Over time, LOTTE is expected to use the facility to expand its CDMO offerings for the biopharma industry.
In the deal, William Blair is serving as financial advisor to Bristol Myers Squibb, and Baker McKenzie is serving as legal counsel.
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