The American private equity group H.I.G. Capital said it has completed its US$250 million purchase of Charlottetown-based Biovectra, which makes ingredients for drugs.

The private equity fund, which has $34 billion under management, issued a statement on Monday saying one of its affiliates completed the purchase from Mallinckrodt Pharmaceuticals, of the U.K. Mallinckrodt said in September it had agreed to the sale, which would feature a fixed payment now and a deferred payment that will depend on the company’s performance.

BioVectra Inc. is a leading contract development and manufacturing organization, or CDMO, which means it manufactures drugs and active pharmaceutical ingredients and intermediates for pharmaceutical companies.

“We are excited to enter into this new chapter with H.I.G. Capital,” said BioVectra CEO Oliver Technow in the statement Monday. "We have been fortunate over the last few years with the support of Mallinckrodt Pharmaceuticals to execute on our strategic growth plan. We look ahead to continuing on this path with H.I.G. Capital, an experienced investor in the CDMO space. H.I.G. is committed to our strategy and management team, and we look forward to continuing to pursue the company’s various growth initiatives."

Under the new ownership, BioVectra plans to continue to develop its plants in Charlottetown and Windsor, N.S., which together will add 150 employees. The company now employs 350 people and since 2015 has averaged almost $25 million in capital investments each year.

"We are very pleased to partner with Oliver Technow as well as his exceptional leadership team and dedicated employees," said Mike Gallagher, Managing Director at H.I.G. Capital. "Oliver and his team have expanded BioVectra’s presence by pursuing strategic capital expenditure programs to significantly expand capacity. We believe the company is well positioned to capitalize on the growing demand for its broad set of technical capabilities and exceptional quality track record."