Permira Funds to Acquire Cambrex for $2.4 Billion, Offering $60 per Share in Cash

On August 7, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Cambrex (NYSE ticker: CBM), a small-molecule company providing active pharmaceutical ingredients (APIs), drug products, and analytical services throughout the drug lifecycle, announced it had signed a $2.4 billion acquisition agreement with Permira Funds, inclusive of Cambrex’s net debt.

Under the terms of the merger agreement, Cambrex shareholders will receive $60 in cash for each share of common stock, representing a 47% premium over yesterday’s closing price of $40.78. The transaction is expected to close in the next quarter; however, Cambrex has a 45-day “go-shop” period during which it may solicit other buyers.

In recent years, Cambrex has emerged as a leading development and manufacturing organization in the small-molecule sector. Its acquisition of Halo Pharma in 2018 and Avista Pharma Solutions in 2019 expanded its drug production capabilities and comprehensive early-stage and analytical testing services, enabling Cambrex to deepen customer relationships across the entire product lifecycle and secure a leading position in the pharmaceutical manufacturing industry.

“We are pleased to enter into this transaction with Permira Funds, a global private equity firm that has made significant investments in the pharmaceutical services sector. This agreement strongly supports our strategy and delivers substantial value to our shareholders,” commented Steve Klosk, President and Chief Executive Officer of Cambrex. “Cambrex will continue to actively fulfill its commitments to its global customer base, striving to deliver best-in-class, world-class services,” he added.

“We are very pleased to support Cambrex as it enters the next phase of growth,” said Henry Minello, Head of Permira Funds’ Global Healthcare Group. “Over the years, Cambrex has established a leading position among its peers in capabilities and facilities, backed by an outstanding reputation for quality, technology, and expertise. We look forward to working with Cambrex’s excellent management team and employees to support the growth of its integrated service offerings.”

In this transaction, Morgan Stanley & Co. LLC served as the exclusive financial advisor, and Kirkland & Ellis LLP acted as legal counsel to Cambrex. RBC Capital Markets, as the exclusive financial advisor, provided committed debt financing to the Permira Funds, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to the Permira Funds.

Cambrex is a leading small-molecule company. The company provides end-to-end partnerships for the research, development, and manufacturing of small-molecule therapies. With over 35 years of experience and more than 2,000 experts serving global clients across North America and Europe, Cambrex is a trusted partner in the branded and generic markets for API and dosage form development and manufacturing. Cambrex offers a range of specialized pharmaceutical technologies and capabilities, including biocatalysis, continuous flow chemistry, controlled substances, solid-state science, material characterization, and high-potency APIs.

Permira Funds is a global investment firm. Established in 1985, the firm manages approximately $48 billion in invested capital and provides long-term investments to businesses, including majority control investments and strategic minority equity stakes, with the aim of enhancing performance and driving sustainable growth. Permira Funds has completed more than 250 private equity investments across five key sectors: technology, consumer, financial services, industrial technology and services, and healthcare. The firm employs over 250 professionals across 14 offices in Europe, North America, and Asia.

(Compiled by Xu Wenjuan)