27 May 2022

William Blair & BDA advise BMS on sale of East Syracuse, NY facility to LOTTE

Agreed to divest East Syracuse, New York facility to LOTTE Corporation

2022

BDA Partners is pleased to announce that Bristol Myers Squibb (“BMS”), advised by William Blair in conjunction with BDA Partners, has agreed to divest its manufacturing facility in East Syracuse, New York to LOTTE Corporation. The East Syracuse site will serve as the LOTTE Center for North America Operations for LOTTE’s new biologics contract development and manufacturing organization (CDMO) business in the United States. The East Syracuse site is a state-of-the-art manufacturing facility with commercial-scale production capacity for biologics. The site was originally established in 1943 to answer the US Government’s call for large-scale production of penicillin. 


The companies anticipate completing the transaction by 2H 2022, subject to the receipt of regulatory approval and the satisfaction of other closing conditions. 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 products for BMS from the East Syracuse facility. Over time, LOTTE is expected to use the facility to expand its CDMO offerings for the biopharma industry.

“The East Syracuse site has been an important part of our company’s history and our manufacturing network for many decades, and we are confident that LOTTE will fully leverage the facility, its capabilities and its experienced workforce as it continues to play a vital role for patients around the world,” said Karin Shanahan, Executive Vice President, Global Product Development and Supply, BMS. “We have taken a thoughtful approach to this decision and are confident this will best support the continued evolution of our manufacturing network and our mission to deliver innovative medicines that help patients prevail over serious diseases.”

“We are pleased to add this state-of-the-art facility to our global pharma operations, which will enable us to rapidly scale and expand our biologics CDMO business in North America,” said Hunki Lee, Executive Vice President of LOTTE Corporation. “We look forward to welcoming the talented team in East Syracuse to LOTTE, and we intend to make significant investments to further enhance the facility and its capabilities to support our strategic growth objectives moving forward.”

“This transaction continues the trend of pharma majors focusing resources on key drug development and commercialization activities while optimizing their manufacturing footprints by partnering with trusted and specialized CDMO players”, said Andrew Huntley, Managing Partner and Global Head of BDA’s Healthcare sector banking team. “I’m delighted that BDA and our partners at William Blair could deploy our deep Pharma Services experience between North America and Asia to help bring about this strategic solution.”

“LOTTE is one of Korea’s most respected business groups, and it is exciting to see it expanding actively and internationally in the biologics space,” said Howard Lee, Partner and BDA’s Head of Seoul. “Our Korea-based banking team’s deep corporate relationships and credibility with large Korean groups helped deliver this outcome for BMS.”

About Bristol Myers Squibb

Bristol Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. www.bms.com

About LOTTE

LOTTE Corporation is a holding company of LOTTE Group, based in Seoul, Korea. LOTTE Group was formally established in 1967 and has since grown to become Korea’s fifth-biggest conglomerate encompassing four key business areas including Food & Beverage, Retail, Chemical, Hotel & Service with more than 90 affiliates. Most of LOTTE Group’s businesses have taken leading position in domestic market. LOTTE Group is in over 30 countries around the world. LOTTE is also well-known for its skyscraper ‘LOTTE World Tower’ which is the tallest building in South Korea and the 5th tallest in the world. www.lotte.co.kr

About BDA

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul, and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese Government-owned bank with US$150bn of assets.

US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com