A dominant cell and gene therapy (CGT) CDMO, Avid Bioservices, Inc. (NASDAQ: CDMO) has announced it will be going private in a hefty $1.1 billion acquisition by GHO Capital Partners and Ampersand Capital Partners. The deal, an all-cash transaction, is set to shift Avid from a publicly traded company to a lucratively funded and strategically agile private entity.
Private Equity Demand for CGT CMDO Assets
Headquartered in Tustin, California (USA) and founded in 1981, Avid Bioservices has evolved over the past 43 years into a global leader in cell and gene therapy (CGT) CDMO services. Avid specializes in providing comprehensive services, including cell line development, CGMP manufacturing, and regulatory support for clinical and commercial-stage biologics, as well as novel cell and gene therapies.
The acquisition, valued at $12.50 per share, reflects a 13.8% premium over Avid’s closing price on November 6, 2024, and a 21.9% premium on its 20-day volume-weighted average share price. For Avid’s stockholders, the agreement represents an opportunity to realize an immediate and substantial upside on their investment.
Nick Green, President and CEO of Avid Bioservices, highlighted the importance of the deal, saying ““After years of investment and expansion, now is the right time to move forward as a private company with new owners that will support our next phase.” Green emphasized that partnering with GHO and Ampersand would provide the expertise, network, and capital needed to strengthen Avid’s foundation and drive future growth.
Why GHO and Ampersand?
Both GHO Capital and Ampersand Capital Partners are renowned for their strategic investments in the cutting-edge healthcare and life sciences companies.
GHO Capital, headquartered in London, brings a proven track record in fostering global healthcare opportunities. Their approach focuses on improving healthcare accessibility and efficiency, which aligns with Avid’s commitment to high-quality manufacturing of novel therapeutics. Ampersand Capital Partners, based in Boston and Amsterdam, specializes in middle-market healthcare investments. With decades of experience and a deep understanding of the CDMO space, Ampersand has been instrumental in funding pioneering healthcare companies.
Alan MacKay, Managing Partner at GHO, shared, “Avid operates in high-growth markets, producing complex biologics for leading innovators. With recent investments in capacity and talent, the company is well-positioned for growth, and we are eager to support its journey.”
David Anderson, General Partner at Ampersand, echoed this sentiment, saying “Avid’s strong regulatory track record and breadth of services make it a cornerstone in the biopharmaceutical manufacturing ecosystem. We look forward to driving growth through our collaborative approach.”
What’s Next for Avid?
The transaction, unanimously approved by Avid’s Board of Directors, is expected to close in early 2025, pending shareholder and regulatory approvals. Once finalized, Avid’s common stock will no longer be listed on public exchanges.
The company will continue to operate under its existing name and brand, leveraging the resources and expertise of its new owners.
During this transitional period, Avid will maintain its commitment to delivering high-quality services to its biotechnology and pharmaceutical partners.
This acquisition marks a pivotal moment for Avid Bioservices and the cell and gene therapy (CGT) CDMO industry. By joining forces with GHO Capital and Ampersand, Avid gains access to resources that will enhance its geographic reach, expand service offerings, and fuel its mission to support the development of innovative biologics and living therapies.
As the CGT landscape evolves, this strategic move positions Avid as a stronger and more agile player, ready to meet the growing demand for complex manufacturing.
For other leading CDMOs, this lucrative acquisition marks the opportunity for them to seek capital partners or large exits as well.
To learn more about the market competitors in this rapidly evolving industry, view the “Global Database of Cell and Gene Therapy CDMOs, 2024“.
