EQT Acquires Majority Stake in Aldevron, a Leading Provider of Custom Biologics Manufacturing Services

On July 31, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that EQT VIII had signed an agreement to acquire a majority stake in Aldevron. Upon completion of the transaction, EQT VIII will hold the majority equity interest in Aldevron, while Michael Chambers, Founder and CEO of Aldevron, and TA Associates, Aldevron’s controlling shareholder, will retain minority stakes.

In this acquisition, Morgan Stanley served as the financial advisor to EQT, and Simpson Thacher & Bartlett LLP acted as legal counsel to EQT. Goldman Sachs served as the financial advisor to TA Associates, and Kirkland & Ellis LLP acted as legal counsel to TA Associates. Subject to customary conditions and regulatory approvals, the transaction is expected to close by the end of the year.

Aldevron was founded by Michael Chambers and John Ballantyne in 1998. Headquartered in Fargo, North Dakota, USA, the company operates manufacturing facilities in Madison, Wisconsin, USA, and Freiburg, Germany. Aldevron is dedicated to providing custom production services for nucleic acids, proteins, and antibodies to biotechnology companies. Its plasmids, RNA, and gene-editing enzymes support a wide range of applications, including research and development, clinical trials, and commercial production. With approximately 400 employees worldwide, Aldevron serves more than 4,800 clients, including leading academic research institutions, pharmaceutical companies, and biotechnology firms.

EQT, founded in 1994 and headquartered in Stockholm, Sweden, is a private equity firm. The company has raised over €61 billion across 29 funds, with assets under management totaling approximately €40 billion. EQT’s portfolio companies, located in Europe, parts of Asia, and the United States, generate combined sales exceeding €21 billion and employ around 127,000 people. EQT invests in outstanding companies worldwide, with a mission to help them evolve into exceptional and sustainable enterprises.

Aldevron has invested substantial resources in developing new life-saving therapies. EQT will help advance Aldevron’s new R&D efforts and support its growth in the field of gene medicine. Additionally, EQT will provide extra support to increase Aldevron’s production capacity in Fargo, North Dakota, USA, further solidifying the company’s market position in the region.

Michael Chambers, Co-Founder and CEO of Aldevron, commented, “We are proud of what Aldevron has achieved over the past two decades. We remain dedicated to working with our customers to develop and manufacture high-quality biologics globally, helping them drive meaningful change. EQT shares our values and is an ideal partner, bringing extensive healthcare expertise and a global business network.”

Eric Liu, Partner at EQT and Investment Advisor for EQT VIII, stated, “For many years, EQT has closely monitored the life sciences and gene therapy sectors, and we believe Aldevron is a key supplier in this rapidly growing field. Aldevron provides its customers with cutting-edge therapeutic solutions that address previously incurable medical conditions, thereby improving the lives of patients worldwide. With its extensive scientific knowledge and process expertise, Aldevron knows how to produce the highest-quality products. We are delighted to collaborate with Michael and his team to drive Aldevron’s continued growth.”

Marc Wolff, Chief Financial Officer of Aldevron, stated: “EQT is one of the top ten private equity investment firms globally, bringing substantial financial strength and international influence to Aldevron. Leveraging EQT’s strategic approach, TA Associates’ industry expertise, and our own professional capabilities, Aldevron is well-positioned for sustained growth and further strengthening our commitment to customers.”

TA Associates is a private equity firm headquartered in Boston, Massachusetts, founded in 1968. The company engages in acquisition, growth, expansion, and recapitalization transactions across companies in the business services, consumer, financial services, healthcare, and technology sectors. Additionally, the firm specializes in mezzanine debt, management buyouts, PIPEs, leveraged recapitalizations, subordinated debt, and acquisition financing.

(Compiled by Cheng Tao)