Two private equity firms, GHO Capital Partners and Ampersand Capital Partners, have agreed to acquire Avid Bioservices, a Tustin, California-based CDMO of biologics, for $1.1 billion. 

Avid’s services include cGMP clinical and commercial drug-substance manufacturing, bulk packaging, release and stability testing, and regulatory submissions support. Earlier this year (January 2024), the company announced the completion and launch of a new 52,000-square-foot cell- and gene-therapy development and manufacturing facility to add viral vector capabilities. In its last fiscal year (ending April 30, 2024), the company posted revenues of $139.9 million.  

Under the agreement, GHO and Ampersand would acquire all the outstanding shares held by Avid’s stockholders for $12.50 per share in cash, which equates to an enterprise value of approximately $1.1 billion. 

The transaction, which was unanimously approved by the Avid Board of Directors, is expected to close in the first quarter of 2025, subject to customary closing conditions, including approval by Avid’s stockholders and receipt of required regulatory approvals. The transaction is not subject to a financing condition, and the companies will continue to operate independently until the proposed transaction is finalized. The company will continue to operate under the Avid name and brand. 

Source: Avid Bioservices