bluebird bio Announces Acquisition by Carlyle and SK Capital
Deal News | Feb 21, 2025 | SK Capital
bluebird bio has entered into a definitive agreement to be acquired by Carlyle and SK Capital Partners, supported by a team of experienced biotech executives led by future CEO David Meek. This acquisition will be executed at a potential total value of $9.84 per share, consisting of an upfront cash payment of $3.00 per share and a contingent value right of $6.84 per share if a net sales milestone is achieved. bluebird's Board of Directors endorses the transaction, having deemed it in stockholders' best interests following an exhaustive strategic review. This comes amid financial challenges, including a potential default on loan covenants without significant capital infusion. The transaction, likely to close in the first half of 2025 pending regulatory approvals, will result in bluebird becoming a private entity. Carlyle and SK Capital aim to advance bluebird's development and commercialization of gene therapies, building on its pioneering efforts in treating severe genetic diseases like sickle cell disease and cerebral adrenoleukodystrophy. Leerink Partners and Latham & Watkins LLP are advising bluebird, while Bourne Partners is advising Carlyle and SK Capital. The stockholder vote is set to take place soon, solidifying a significant shift in bluebird’s strategic direction.
Sectors
- Biotechnology
- Private Equity
Geography
- United States – bluebird bio is based in Somerville, Massachusetts, and the acquisition involves companies with significant operations in the U.S.
Industry
- Biotechnology – The article emphasizes bluebird bio's focus on gene therapy for severe genetic diseases, underlining its role within the biotech industry.
- Private Equity – The acquisition of bluebird bio by Carlyle and SK Capital highlights activities in private equity and investment management industries.
Financials
- 9.84 – Total potential acquisition value per share for bluebird bio, combining upfront cash and contingent value rights.
- 3.00 – Initial cash per share that bluebird stockholders will receive.
- 6.84 – Contingent value right per share if certain net sales milestones are achieved.
- 441,000,000,000 – Assets under management by Carlyle as of December 31, 2024.
- 9,000,000,000 – Assets under management by SK Capital.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| bluebird bio, Inc. | Target Company | Company | A pioneer in gene therapy focused on severe genetic diseases. |
| Carlyle | Acquirer | Company | A global investment firm with significant assets under management. |
| SK Capital Partners | Acquirer | Company | A private investment firm focused on the life sciences, specialty materials, and ingredients sectors. |
| David Meek | Expected Future CEO of bluebird bio | Person | Former CEO of Mirati Therapeutics and Ipsen, poised to lead bluebird post-acquisition. |
| Leerink Partners | Financial Advisor to bluebird | Company | Acts as bluebird bio's financial advisor for the transaction. |
| Latham & Watkins LLP | Legal Advisor to bluebird | Company | Provides legal counsel to bluebird bio in the acquisition deal. |
| Bourne Partners | Financial Advisor to Carlyle and SK Capital | Company | Advises the acquirers in financial aspects of the transaction. |
| Hercules Capital, Inc. | Loan Provider | Company | bluebird has amended its loan agreement with Hercules Capital to maintain liquidity. |