Permira buys Cambrex

Cambrex has signed a definitive agreement to be acquired by an affiliate of private equity firm Permira, which has $48 billion of committed capital in its portfolio, covering healthcare among four other sectors. The transaction values the firm at about $2.4 billion, including net debt, or $60/share. This represents a 47.1% premium on the closing stock price on 6 August, the day before the announcement.

Completion is expected in Q4, subject to shareholder agreement and customary regulatory approvals, and assuming no better offer comes forward in a 45-day ‘go-shop’ period to 20 September. During this time, Cambrex may actively solicit acquisition proposals from third parties and recommend any superior offer to its shareholders.

This all follows several years of growth, both organic and inorganic, notably the acquisitions of Halo Pharma and Avista Pharma Solutions. These added drug product manufacturing and early stage and analytical testing services to the company portfolio. President and CEO Steve Klosk (pictured) said that the firm “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”.

Earlier, Cambrex had announced that it is doubling the footprint of its solid form screening and crystallisation process development facility in Edinburgh, Scotland, to nearly 1,400 m2. The site, formerly Solid Form Solutions, could add up to 40 more scientists to the existing 50, as well as adding new UPLC and other analytical capabilities. Fit out was expected to begin in late August, with a target completion date of the end of the year.