Funds managed by GHO Capital Partners and Ampersand Capital Partners have signed a definitive agreement to acquire biologics contract development and manufacturing organisation (CDMO) Avid Bioservices in a $1.1bn cash transaction.
The merger agreement stipulates that GHO and Ampersand will purchase all outstanding shares of Avid for $12.50 per share in cash.
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The acquisition price reflects a 13.8% premium over the closing share price of Avid Bioservices on 6 November 2024, the last full trading day before the announcement.
It also represents a 21.9% premium over the 20-day volume-weighted average share price leading up to the same date.
GHO managing partners Alan MacKay and Mike Mortimer stated: “Our mission at GHO is to make healthcare better, faster and more accessible, and at the heart of this is enabling efficient, high-quality manufacturing of innovative treatments.
“Avid exemplifies this perfectly – the company operates in high-growth markets, producing complex biologics for leading pharmaceutical and biotech innovators at both the clinical and commercial stages.”
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By GlobalDataAvid’s board of directors unanimously approved the transaction, which will be concluded in the first quarter of 2025.
The closure is subject to customary conditions, along with approval from Avid’s stockholders and receipt of necessary regulatory clearances. Notably, the agreement does not hinge on financing conditions.
Once the transaction is finalised, Avid’s common stock will be delisted from public stock exchanges. However, the company will retain its name and brand post-acquisition.
Until the deal is closed, Avid and the acquiring firms will operate independently.
Moelis & Company is the exclusive financial advisor to Avid, with Cooley acting as its legal counsel. William Blair & Company and Ropes & Gray are providing financial advisory and legal counsel services to GHO and Ampersand respectively.
Avid Bioservices CEO and president Nick Green stated: “Since our founding, Avid Bioservices’ business has grown by evolving to meet our customers’ broad range of development and manufacturing needs. After years of investment and expansion, now is the right time to move forward as a private company with new owners that will support our next phase.”
