PharmChem, a Fort Worth-based maker of sweat patch drug detection products used in long-term monitoring programs, has been acquired by Colorado-based Alcohol Monitoring Systems in a $3.75-per-share cash deal.

PharmChem (OTC: PCHM) said the share price represents a 22% premium over its $3.07 closing price on Jan. 31, just before it announced plans to explore strategic alternatives.

The acquisition expands Alcohol Monitoring Systems’ presence in compliance-based drug and alcohol monitoring technologies. The Colorado company—known for its SCRAM Systems product line, which includes ankle-worn devices that monitor alcohol levels through perspiration—said the deal enhances its capabilities in drug detection and complements its existing alcohol and location monitoring technologies.

PharmChem’s signature product—the PharmChek Sweat Patch—is a tamper-resistant, continuous-wear patch used to detect drugs of abuse over extended periods. The company, founded in 1971, has operated from Fort Worth for more than three decades and underwent a leadership transition in 2021 aimed at strengthening sales, marketing, and customer experience.

In a statement, Board Chairman Tim Eriksen said the successful outcome of the company’s strategic alternatives process “validates the board’s belief that PharmChem and its products are well positioned in the industry.” He added that the company’s long-term value would be better realized as part of a larger organization.

Interim CEO Thompson Clark said the deal followed a competitive process with multiple interested parties. “It’s not every day that a deal benefits all stakeholders, but this is one of those days,” he said.

Alcohol Monitoring Systems CEO Chris Linthwaite called the acquisition a strategic fit. “Our customers are tackling tremendous complexity in accomplishing their public safety mission,” he said. “This expands our organizational capabilities and supports our commitment to meet those growing needs.”

Financial terms beyond the share price were not disclosed. The transaction is expected to close before the end of the third quarter.

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