Permira Funds to acquire US CDMO Cambrex for $2.4bn

Permira acquisition of Cambrex : Global investment firm Permira Funds, through one of its affiliates, has agreed to acquire US contract development and manufacturing organization (US CDMO) Cambrex for about $2.4 billion, including the assumption of its net debt.

Based in New Jersey, Cambrex is a small molecule company that offers drug substance, drug product, and analytical services across the complete drug lifecycle.

Henry Minello – Principal in the Global Healthcare Group of Permira, commenting on Permira acquisition of Cambrex, said: “We are very excited to back Cambrex in its next phase of growth.

“Over many years, Cambrex has built a leading position with best-in-class capabilities and facilities, backed by an excellent reputation for quality and technical expertise.  We look forward to partnering with Cambrex’s talented management and employees to support the growth of its integrated services offering.”

Permira acquisition of Cambrex. Image courtesy of Ben Schonewille at FreeDigitalPhotos.net

Cambrex had acquired Halo Pharma for $425 million (Cambrex acquisition of Halo Pharma) last year and this year acquired Avista Pharma Solutions to add drug product manufacturing and a complete variety of early-stage and analytical testing services to its drug substance manufacturing capabilities. The acquisitions are said to enable Cambrex to broaden customer relationships throughout the full product lifecycle, ranging from pre-clinical through commercial.

As per the terms of Permira acquisition of Cambrex, shareholders of the US CDMO will be paid $60.00 per share, according to the latest pharma acquisition news.

Commenting on Permira acquisition of Cambrex, Steve Klosk – President and CEO of Cambrex, said: “We are excited to announce this transaction with Permira, a global private equity firm that has made significant investments in the pharma services space.  This agreement is a strong endorsement of our strategy and represents significant value for our shareholders.

“Cambrex will continue to invest aggressively in our commitment to our global customer base, where we are constantly looking at ways to provide the broadest possible range of world class services.”

Morgan Stanley & Co is the financial advisor and Kirkland & Ellis, the legal advisor to Cambrex for the transaction. On the other hand, RBC Capital Markets is the financial advisor and provided committed debt financing to the Permira funds, while Skadden, Arps, Slate, Meagher & Flom is the legal advisor to the global investment firm.

As per the latest pharma acquisition news, completion of Permira acquisition of Cambrex, which is subject to receipt of approval by the shareholders of the US CDMO and customary regulatory approvals and other customary closing conditions, is likely to occur during Q4 2019.

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