Avid Bioservices to be Acquired in a $1.1 Billion Deal
Deal News | Nov 07, 2024 | Globenewswire
Avid Bioservices, Inc. has announced that it will be acquired by GHO Capital Partners LLP and Ampersand Capital Partners. The deal is an all-cash transaction valued at $1.1 billion, with Avid stockholders receiving $12.50 per share, a significant premium over the pre-announcement trading price. With a transaction enterprise value reflecting a 6.3x multiple to expected FY2025 revenue, this merger will result in Avid transitioning to a private company. GHO Capital and Ampersand are known for their expertise in the contract development and manufacturing organization (CDMO) space, making this acquisition particularly strategic for Avid's continued growth. Advisors on the transaction include Moelis & Company and Ropes & Gray LLP. The deal was unanimously approved by Avid's Board and is anticipated to close in the first quarter of 2025, pending standard regulatory and shareholder approvals.
Sectors
- Biotechnology
- Private Equity
- Pharmaceuticals
Geography
- United States – Avid Bioservices is headquartered in Tustin, California, and operates within the U.S. biotechnology and pharmaceuticals market.
- United Kingdom – GHO Capital Partners is a healthcare investment advisor based in London, playing a crucial role in the acquisition process.
Industry
- Biotechnology – Avid Bioservices operates in the biotechnology industry, providing CDMO services, which is a critical segment in the development and manufacturing of biologics.
- Private Equity – The acquisition involves GHO Capital Partners and Ampersand Capital Partners, both active in the private equity sector, investing in growth-oriented businesses.
- Pharmaceuticals – The acquisition influences the pharmaceuticals sector as Avid plays a role in manufacturing complex biologics for pharmaceutical companies.
Financials
- $1.1 Billion – Total value of the acquisition deal for Avid Bioservices by GHO Capital and Ampersand Capital Partners.
- $12.50 – Purchase price per share in the acquisition, representing a 13.8% premium over the last trading day price.
- 6.3x – The acquisition reflects a 6.3x multiple to consensus FY2025 Revenue.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Avid Bioservices, Inc. | Target | Company | A dedicated biologics CDMO serving biotechnology and pharmaceutical companies with development and manufacturing services. |
| GHO Capital Partners LLP | Buyer | Company | A leading specialist healthcare investment advisor based in London, involved in acquiring Avid Bioservices. |
| Ampersand Capital Partners | Buyer | Company | A private equity firm with a focus on growth-oriented investments in the healthcare sector, co-buyer in the Avid acquisition. |
| Moelis & Company LLC | Financial Advisor to Avid | Company | Provided exclusive financial advisory services to Avid Bioservices on the acquisition deal. |
| Cooley LLP | Legal Advisor to Avid | Company | Served as legal counsel to Avid Bioservices for the acquisition. |
| William Blair & Company, LLC | Financial Advisor to Buyers | Company | Served as exclusive financial advisor to GHO and Ampersand. |
| Ropes & Gray LLP | Legal Advisor to Buyers | Company | Served as legal counsel to GHO Capital and Ampersand. |