AMAG Pharmaceuticals, Inc. announced it has entered into a definitive agreement to divest Cord Blood Registry to GI Partners, a private equity investment firm, for $530 million in an all cash sale. The parties expect to close the transaction in the third quarter of 2018.

Cord Blood Registry has an 80,000-square-foot laboratory in Tucson.

“The divestiture of CBR is an important step as we execute on AMAG’s strategic plan, which includes leveraging our proven expertise in drug development and commercialization to bring innovative products to patients with unmet medical needs,” said William Heiden, president and chief executive officer at AMAG. “The transaction allows us to focus squarely on investing in and growing AMAG’s current pharmaceutical products, as well as continuing to expand the portfolio through additional product acquisitions or licenses.”

AMAG intends to use the majority of the transaction proceeds to pay off the remaining $475 million of principal of its 7.875% Senior Notes due 2023.

“With the recent back-to-back FDA approvals of the Makena® subcutaneous auto-injector and the expanded Feraheme® label, the launch of Intrarosa® and the FDA acceptance of the bremelanotide new drug application, we are well positioned for significant and durable future growth,” said Ted Myles, AMAG’s chief financial officer. “We believe eliminating the high-yield bonds from our capital structure will align our balance sheet with our long-term growth plans and our renewed focus on growing and further diversifying our pharmaceutical business.”

The transaction has been unanimously approved by AMAG’s Board of Directors. The closing of the transaction, including the timing of such closing, will be governed by the terms of the definitive agreement, including the satisfaction of customary closing conditions.

The company expects to update its 2018 financial guidance following the close of the transaction.

Perella Weinberg Partners LP served as financial advisor to AMAG. Goodwin Procter LLP served as legal advisor to AMAG.