Permira Funds Acquiring Cambrex For $2.4 Billion: Details About The Deal You Should Know

By Dan Anderson ● August 8, 2019
  • Leading small molecule company providing drug substance, drug product, and analytical services Cambrex Corporation recently announced it is being acquired by Permira Funds as part of a $2.4 billion deal

Cambrex Corporation — a leading small molecule company providing drug substance, drug product, and analytical services across the entire drug lifecycle — announced this week that it signed a definitive agreement to be acquired by an affiliate of Permira Funds in a transaction valued at approximately $2.4 billion including Cambrex’s net debt. As part of the deal, Cambrex shareholders will receive $60 in cash for each share of Cambrex common stock, representing a 47.1% premium to the August 6 closing stock price and a 37.3% premium to the 60-day volume-weighted average closing price leading up to this announcement. 

Cambrex has grown to become the premier contract development and manufacturing organization in the small molecule space over the last several years. And its recent acquisitions of Halo Pharma in 2018 and Avista Pharma Solutions in 2019 added drug product manufacturing and a full range of early-stage and analytical testing services to the company’s leading position in drug substance manufacturing thus allowing Cambrex to broaden customer relationships over the full product lifecycle, from pre-clinical through commercial.

“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,” said Cambrex CEO and president Steve Klosk. “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.”

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Cambrex provides customers with an end-to-end partnership for the research, development, and manufacturer of small molecule therapeutics. And with over 35 years experience and a growing team of more than 2,000 experts servicing global clients from sites in North America and Europe, Cambrex has become a trusted partner in branded and generic markets for API and dosage form development and manufacturing.

Morgan Stanley & Co. LLC is acting as exclusive financial advisor and Kirkland & Ellis, LLP is serving as legal advisor to Cambrex. And RBC Capital Markets is acting as exclusive financial advisor and provided committed debt financing to the Permira funds and Skadden, Arps, Slate, Meagher & Flom, LLP is serving as legal advisor to the Permira funds.

Cambrex offers a range of specialist drug substance technologies and capabilities including biocatalysis, continuous flow, controlled substances, solid state science, material characterization and highly potent APIs. And Cambrex can support conventional dosage forms including oral solids, semi-solids and liquids and has the expertise to manufacture specialist dosage forms such as modified-release, fixed dose combination, pediatric, bi-layer tablets, stick packs, topicals, controlled substances, sterile, and non-sterile ointments.

“We are very excited to back Cambrex in its next phase of growth,” added Henry Minello — the Principal in the Global Healthcare Group of Permira. “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.”

The completion of the transaction is subject to customary closing conditions including the receipt of approval by Cambrex’s shareholders and customary regulatory approvals. The closing is expected to occur during the Q4 2019. And the transaction will be financed through a combination of debt and equity financing.