West Columbia, SC, August 31, 2025
News Summary
Nephron Pharmaceuticals in Lexington County has announced the sale of its headquarters for $340 million as part of a sale-leaseback arrangement. This financial strategy allows the company to maintain operational control of its 700,000-square-foot facility while freeing up capital for growth and recapitalization. The business plans to enter a 20-year lease post-sale, amidst ongoing regulatory scrutiny and prior product recalls, as it navigates a challenging market environment.
West Columbia, SC – Nephron Pharmaceuticals, an influential employer in Lexington County, has initiated the process of selling its headquarters located at 4500 12th St. Ext. The extensive drug manufacturing facility, covering over 700,000 square feet, has been officially put on the market as a sale-leaseback arrangement on August 26, with a price tag of $340 million. This transaction has been facilitated by Kwekel Companies, a commercial real estate firm specializing in such deals.
A sale-leaseback arrangement allows a company to sell its property while maintaining operational control through a lease. Once the transaction is completed, Nephron intends to enter a 20-year lease for the facility, ensuring continuity in its manufacturing operations. Company representatives characterized this financial maneuver as a form of cash-out refinancing, which will enable Nephron to release capital by opting to rent the property rather than retain ownership.
The move to sell the facility is part of Nephron’s broader financial strategy, coinciding with a recent $350 million credit line obtained from WhiteHawk Capital Partners. This funding is aimed at assisting in the company’s recapitalization efforts and ensuring adequate liquidity to support growth opportunities amid challenging market conditions.
Nephron’s leadership is actively reassessing the company’s operational structure in response to the evolving landscape shaped by post-COVID challenges and regulatory changes. The company has recently come under increased scrutiny from the FDA regarding compliance with drug safety and production practices. These regulatory challenges, along with a prior voluntary recall of twenty products due to sterility concerns, have underscored the importance of financial stability and operational integrity.
As of December 2024, Nephron employed over 1,000 individuals and has been a significant beneficiary of state and county tax incentives, awarded for its role as an economic contributor within the community. These incentives have included agreements to lessen property tax assessments and establish capped millage rates for extended periods, which have been vital in supporting the company’s operations.
In late 2022, the company further expanded its manufacturing capabilities by launching a new plant dedicated to producing medical-grade gloves, representing an investment of $100 million and the creation of 250 new jobs. However, despite these expansions and financial support from local officials, Nephron has struggled to meet employment targets set in previous agreements.
Nephron’s CEO, Lou Kennedy, is also known for her recent sale of her Lake Murray estate in March 2025 for a record $9.25 million, highlighting her significant financial dealings. As Nephron navigates these challenges, the ongoing support from South Carolina leaders remains critical to its future prospects.
As the process of selling the headquarters unfolds, all eyes will be on how this strategic decision affects Nephron’s operations and overall market position in the coming years.
FAQ
Why is Nephron Pharmaceuticals selling its headquarters?
Nephron Pharmaceuticals is selling its headquarters as a sale-leaseback arrangement to free up capital for recapitalization and growth opportunities. This helps the company maintain liquidity while continuing its operations under a long-term lease.
What are the terms of the sale-leaseback agreement?
The property is listed for $340 million, and Nephron plans to sign a 20-year lease after the sale is finalized, allowing them to continue operating from the facility.
What other recent developments have occurred at Nephron Pharmaceuticals?
Recently, Nephron expanded its operations by opening a medical-grade glove manufacturing plant with a $100 million investment, creating 250 new jobs. However, the company has faced regulatory scrutiny from the FDA and has dealt with product recalls due to sterility concerns.
Key Features
| Feature | Details |
|---|---|
| Location | 4500 12th St. Ext, West Columbia, SC |
| Facility Size | Over 700,000 square feet |
| Sale Price | $340 million |
| Lease Period | 20 years |
| Credit Line | $350 million with WhiteHawk Capital Partners |
| Employment | Over 1,000 employees |
| Expansion Efforts | New medical-grade glove manufacturing plant |
Deeper Dive: News & Info About This Topic
HERE Resources
Lexington County Breaks Record with $9.25 Million Estate Sale
Additional Resources
- The State
- Wikipedia: Pharmaceutical industry
- Fits News
- Google Search: Nephron Pharmaceuticals
- Business Wire
- Google Scholar: Nephron Pharmaceuticals
- Manufacturing Dive
- Encyclopedia Britannica: Pharmaceutical industry
- WLTX
- Google News: Nephron Pharmaceuticals
Author: STAFF HERE LEXINGTON WRITER
The LEXINGTON STAFF WRITER represents the experienced team at HERELexington.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.
