Permira proposes to take Cambrex private in $2.4B deal, stirring up CDMO M&A
Cambrex is at the M&A game again, but this time it’s switching roles. After buying out Halo Pharma and Avista Pharma Solutions in the past couple of years, the contract developer and manufacturer is getting acquired.
Private equity firm Permira Funds has put a $2.4 billion offer on the table for the NYSE-listed company, which translates to $60 per share for Cambrex $CBM stockholders or a 47.1% premium to the closing price the day before. Its stock has surged on roughly the same scale.
East Rutherford, NJ-based Cambrex now has 45 days — or 60 under certain circumstances — to shop around for a better deal if it so wishes. Otherwise, the company expects the deal to close in the fourth quarter.
“This agreement is a strong endorsement of our strategy and represents significant value for our shareholders,” president and CEO Steve Klosk said in a statement.
A longtime player in the small molecule space, Cambrex offers services on everything from API to analytics. Through the Halo acquisition last July, it expanded expertise in fixed dosed manufacturing and formulation of oral solids, liquids and ointments, and swallowing Avista this January unlocked another customer base.
Permira has at least one other CDMO in its portfolio: LSNE, which has a similar focus on API and a trans-Atlantic footprint in the US and Europe.
Morgan Stanley is the exclusive financial adviser for Cambrex while RBC Capital Markets advises Permira.