
PRWT Acquires Chemical Manufacturing Facility
from Merck & Co., Inc.
Deal Makes PRWT the First Minority-Owned Manufacturer of
Active Pharmaceutical Ingredients (APIs) in the US and Preserves
Employment at Cherokee Facility in Riverside, PA(PHILADELPHIA) January 1, 2008 -
PRWT Services, Inc., a minority-owned business enterprise, today
announced that it has, through its wholly-owned subsidiary,
Cherokee Pharmaceuticals LLC, acquired the Cherokee chemical
manufacturing plant in Riverside, PA, from Merck & Co., Inc. of
Whitehouse Station, NJ. Cherokee has also entered into a
five-year supply agreement with Merck for an estimated value of
$100-200 million annually.Willie F. Johnson, Chairman & CEO of PRWT,
said: “The acquisition of the Cherokee plant is consistent with
PRWT’s vision of growing the company by expanding into new
markets, services, and lines of business. By establishing a
presence in the Life Sciences market, PRWT can now participate
in an industry with tremendous growth potential and establish a
strategic supplier relationship with Merck, one of the premier
pharmaceutical companies in the world.” Mr. Johnson also
acknowledged PRWT’s employees who have established a culture of
excellence at PRWT that gave Merck the confidence to complete
this historic deal.The Cherokee plant is a state-of-the-art
API manufacturing facility of products/antibiotics for humans
and animals. All 400 employees working at the plant will be
offered jobs and are expected to transfer their employment from
Merck to PRWT effective January 1, 2008. PRWT also intends to
make considerable capital investments in the Cherokee plant to
support the growth of the business and increase the number of
jobs available in the local community.
Justin Noll, the
Cherokee plant manager, stated, “We are genuinely excited about
the sale of the plant and becoming part of PRWT
.
Not only will it be
good for
the employees, but also
for the community at large. We are looking forward to being a
stand-alone company and a company which will have great
potential for expansion.” The sale of the site is part of Merck’s
global restructuring of its manufacturing operations (announced
November 2005) to create a global manufacturing network that is
better aligned to Merck’s current and anticipated future product
demand. “The sale of the Cherokee plant, along with
the supplier relationship Merck has established with Cherokee
Pharmaceuticals, is another important step in the realigning of
our manufacturing operations,” said Larry Naldi, Senior Vice
President, Science & Technology, Merck Manufacturing Division.
“The completion of this sale also enables Merck to continue to
have a presence in the local community through its interactions
with Cherokee."
About PRWT Services, Inc.PRWT is a
nationally recognized African-American owned business
headquartered in Philadelphia, PA. Founded in 1988, PRWT
provides business process outsourcing (BPO) services to state
and local governments across the country. PRWT is one of
America’s largest minority-owned businesses and has been ranked
in the top 100 by
Black Enterprise magazine for the past
seven years. In 2000, PRWT entered a new line of business by
acquiring
U.S.
Facilities, Inc. (USF), a facilities management
company headquartered in Philadelphia, PA. Since being acquired
by PRWT, USF has won several multi-million-dollar contracts in
the federal and municipal markets. For more information, visit
http://www.prwt.com.
About MerckMerck & Co., Inc. is a global
research-driven pharmaceutical company dedicated to putting
patients first. Established in 1891, Merck currently discovers,
develops, manufactures and markets vaccines and medicines to
address unmet medical needs. The Company devotes extensive
efforts to increase access to medicines through far-reaching
programs that not only donate Merck medicines but help deliver
them to the people who need them. Merck also publishes unbiased
health information as a not-for-profit service. For more
information, visit
http://www.merck.com.