Cambrex Agrees to Be Acquired for $2.4 Billion by Private Equity Firm Permira Funds

By Emily Forster -

August 8, 2019

Cambrex, a contract manufacturer of small-molecule active pharmaceutical ingredients and drug products, has signed a definitive agreement to be acquired by an affiliate of the Permira Funds, a private equity firm, in a transaction valued at approximately $2.4 billion, including Cambrex’s net debt.

Under the agreement, Cambrex shareholders will receive $60.00 in cash for each share of Cambrex common stock, which represents 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.

Completion of the transaction is subject to customary closing conditions, including receipt of approval by Cambrex’s shareholders and customary regulatory approvals. Closing is expected to occur during the fourth quarter of 2019.

Additionally, under the terms of the agreement, Cambrex may actively solicit acquisition proposals from third parties during a 45-day “go-shop” period starting from the date of the agreement (which period may be extended under certain circumstances for an additional 15 days), and subject to customary requirements included in the agreement, and enter into or recommend a transaction with a person or group that makes a superior proposal. Cambrex says it does not intend to disclose developments during this process unless and until its Board of Directors makes a decision with respect to any superior proposal it may receive.

The move by Cambrex to be acquired follows two large-scale acquisitions by the company. Last year (2018), Cambrex acquired Halo Pharmaceuticals, a contract provider of drug-product development and manufacturing services, for $425 million. Earlier this year (January 2019), Cambrex acquired Avista Pharma Solutions for $252 million to add early-stage development and analytical testing services to the company’s position in drug-substance manufacturing.

Source: Cambrex