Avid Bioservices, Inc., GHO Capital Partners LLP and Ampersand Capital Partners announced that they have entered into a definitive merger agreement for Avid to be acquired by funds managed by GHO and Ampersand in an all-cash transaction valued at approximately $1.1 billion. The transaction is expected to close in the first quarter of 2025.
Avid Bioservices is a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing its services to biotechnology and pharmaceutical companies. According to its most recent annual report, Avid Bioservices’ revenue during the fiscal year (FY) ended April 30, 2023 was $149.3 million, and adjusted EBITDA during that period was approximately $30 million. Based on the $1.1 billion transaction value, this equates to a price-to-revenue multiple of approximately 7.37x and a price-to-EBITDA multiple of approximately 36.61x.
Global Healthcare Opportunities, or GHO Capital, was founded in 2014 as a specialist healthcare investment advisor based in London.
Founded in 1988, Ampersand is a middle-market private equity firm with more than $3 billion of assets under management dedicated to investments in the healthcare sector.
All the companies involved in the transaction will continue to operate independently until the proposed transaction is finalized. Upon completion of the transaction, Avid common stock will no longer be listed on any public stock exchange. Avid Bioservices will continue to operate under the Avid name and brand.
Moelis & Company is serving as exclusive financial advisor to Avid, and Cooley LLP is serving as legal counsel to Avid. William Blair & Company, LLC is serving as exclusive financial advisor and Ropes & Gray LLP is serving as legal counsel to GHO and Ampersand.
According to data captured in the LevinPro HC database, this transaction represents the 27th CDMO transaction of 2024. There were 21 CDMO deals announced during 2023, and 38 announced during 2022. Additionally, the Avid Bioservices acquisition marks the third largest CDMO deal by purchase price announced so far this year. The largest CDMO deal by purchase price announced during 2024 (so far) is Novo Holdings’ $16.5 billion acquisition of Somerset, New Jersey-based Catalent.
