The strategic investor with special focus on the health care industry, Water Street Healthcare Partners, announced the recent sale of its outsourced pharmaceutical services firm AAIPharma Services Corp. The buyer is Cambridge Major Laboratories Inc. 

AAIPharma and CML had merged to become one of the foremost providers in integrated chemistry, manufacturing and controls services. The transaction is the third Water Street transaction in the past three weeks.

According to Water Street Partner Peter Strothman, "We are pleased that the transformation of AAIPharma into a leading provider of drug development and manufacturing services resulted in a sale that creates an industry leader and delivers an outstanding return to our investors. We leveraged our team's extensive pharmaceutical expertise and network of relationships to build on AAIPharma's core scientific capabilities. Since our investment, the company has doubled its customer base and achieved tremendous growth to create meaningful long-term value for its customers, employees and our investors."

The firm had previous transactions. Last week, the firm sold its anatomic pathology firm PLUS Diagnostics to Miraca Life Sciences. Previous to that week, it sold its New England laboratory company ConVerg Diagnostic Services to Quest Diagnostics.