GHO Capital and Ampersand complete acquisition of biologics CDMO Avid Bioservices to support growth and service expansion.
Quiver AI Summary
GHO Capital Partners and Ampersand Capital Partners have successfully completed the acquisition of Avid Bioservices, a biologics contract development and manufacturing organization, in an all-cash transaction valued at approximately $1.1 billion. This acquisition aims to support Avid’s growth by enhancing its service offerings, investing in talent, and expanding its geographic reach. Avid, known for its high-quality development and manufacturing services for biotechnology and pharmaceutical companies, has significantly grown its capabilities, including investments in state-of-the-art facilities and expertise in bioprocess optimization. GHO's and Ampersand's experience in the CDMO sector positions them to further accelerate Avid's growth and innovation, ultimately enhancing value for its clients and contributing to advancements in healthcare services.
Potential Positives
- Completion of the acquisition by GHO Capital and Ampersand provides Avid Bioservices with new resources to accelerate growth.
- The investment from experienced industry players is expected to enhance Avid's capabilities and service offerings, positioning the company for expansion in the growing biotech sector.
- Avid's stockholders are receiving $12.50 per share in the all-cash transaction valued at approximately $1.1 billion, ensuring immediate financial return for investors.
Potential Negatives
- The completion of the acquisition has resulted in Avid's common stock being delisted from Nasdaq, which could negatively impact visibility and investor interest.
- The transition to new ownership may create uncertainties among employees and clients regarding the company's direction and stability.
- The announcement emphasizes the companies involved are focusing on growth and expansion, which may highlight any prior stagnation or challenges Avid faced under its previous oversight.
FAQ
What is the significance of the acquisition of Avid Bioservices?
The acquisition marks a crucial step for Avid, enhancing its growth potential and service offerings in the biologics CDMO sector.
Who are the key investors involved in the acquisition?
The investors are GHO Capital Partners and Ampersand Capital Partners, both experienced in the healthcare investment sector.
How will this acquisition impact Avid Bioservices' operations?
The acquisition will enable Avid to enhance its capabilities, expand its geographic reach, and deliver greater value to its customers.
What are Avid Bioservices' main services?
Avid offers process development, CGMP clinical and commercial manufacturing, stability testing, and regulatory submissions support for biologics.
What was the acquisition deal value for Avid Bioservices?
The acquisition was valued at approximately $1.1 billion, with stockholders receiving $12.50 per share in cash.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CDMO Insider Trading Activity
$CDMO insiders have traded $CDMO stock on the open market 17 times in the past 6 months. Of those trades, 0 have been purchases and 17 have been sales.
Here’s a breakdown of recent trading of $CDMO stock by insiders over the last 6 months:
- NICHOLAS STEWART GREEN (President & CEO) has made 0 purchases and 6 sales selling 389,737 shares for an estimated $4,740,995.
- DANIEL R HART (Chief Financial Officer) has made 0 purchases and 2 sales selling 22,813 shares for an estimated $278,774.
- MATTHEW R. KWIETNIAK (Chief Commercial Officer) has made 0 purchases and 4 sales selling 14,491 shares for an estimated $174,702.
- RICHARD A. RICHIERI (Chief Operations Officer) has made 0 purchases and 5 sales selling 8,558 shares for an estimated $100,107.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CDMO Hedge Fund Activity
We have seen 89 institutional investors add shares of $CDMO stock to their portfolio, and 77 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- 12 WEST CAPITAL MANAGEMENT LP removed 3,645,844 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $41,489,704
- FIRST LIGHT ASSET MANAGEMENT, LLC added 2,771,853 shares (+inf%) to their portfolio in Q3 2024, for an estimated $31,543,687
- COLISEUM CAPITAL MANAGEMENT, LLC removed 1,746,588 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $19,876,171
- EMERALD ADVISERS, LLC added 1,448,916 shares (+inf%) to their portfolio in Q3 2024, for an estimated $16,488,664
- POINT72 ASSET MANAGEMENT, L.P. added 1,142,756 shares (+42.8%) to their portfolio in Q3 2024, for an estimated $13,004,563
- JENNISON ASSOCIATES LLC added 1,117,104 shares (+inf%) to their portfolio in Q4 2024, for an estimated $13,796,234
- EMERALD MUTUAL FUND ADVISERS TRUST added 1,050,308 shares (+inf%) to their portfolio in Q3 2024, for an estimated $11,952,505
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
- Acquisition of biologics Contract Development and Manufacturing Organisation Avid Bioservices now completed
- GHO and Ampersand’s deep experience in CDMO investing to support Avid’s next stage of rapid growth including expanded offerings, talent investment and greater geographic reach
LONDON and BOSTON and TUSTIN, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) -- GHO Capital Partners LLP ("GHO"), the European specialist investor in global healthcare, and Ampersand Capital Partners (“Ampersand”), a private equity firm specialising in growth equity investments in the life sciences and healthcare sectors, today announced the successful closing of the previously announced acquisition of Avid Bioservices (“Avid” of the “Company”), a dedicated biologics Contract Development and Manufacturing Organisation (“CDMO”) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies.
Avid has experienced significant growth in recent years, offering its clients full lifecycle capabilities—from concept to commercial supply. With substantial investment already made by the Company in its capacity at its state-of-the art facilities and its expertise in bioprocess optimisation, analytical testing, and regulatory compliance, Avid delivers high-quality, industry leading complex biologics to a roster of international customers.
GHO has considerable expertise in the CDMO sector through investments in its portfolio in companies like Ardena, Sterling Pharma Solutions, RoslinCT, and Alcami Corporation. Its strategy focuses on expanding technological capabilities, driving acquisitions, and supporting transatlantic expansion across the CDMO value chain, from early-stage development to commercial manufacturing. Leveraging its healthcare expertise and network, GHO Capital transforms CDMOs to enhance their services and market reach, ultimately delivering better, faster and more accessible healthcare.
Alan MacKay and Mike Mortimer, Managing Partners of GHO, commented: “We are delighted to start 2025 with the completion of this transaction, our first public to private deal. GHO has a deep understanding of the CDMO sector and Avid perfectly exemplifies a company that is operating in high growth markets supporting the growing biotech sector in research and development and big pharma and large biotech for the commercialisation of cutting-edge biologics. Avid's recent investments, both in capacity and its exemplary team, have created a strong foundation for future growth. We look forward to partnering closely with the Avid team to unlock the business’s full potential.”
Nick Green, President and CEO of Avid, said: “Avid has succeeded by evolving and adapting to meet our customers' complex development and manufacturing needs. The completion of this transaction marks an exciting milestone as we move forward with new owners in GHO Capital and Ampersand who will provide us with access to resources that will accelerate our growth. With their support, we are well-positioned to enhance our capabilities, expand our service offerings, and deliver even greater value to our customers in this next phase of our journey."
David Anderson, General Partner of Ampersand, added: “Avid has earned its reputation as a leader in biopharmaceutical development and manufacturing through technical excellence, customised solutions, and consistent regulatory compliance. By combining our deep industry expertise with Avid's established capabilities, we are positioned to deliver enhanced value and accelerate innovation for clients globally.”
On 7 November 2024, GHO and Ampersand 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. With the completion of the transaction, Avid’s stockholders are entitled to receive $12.50 per share in cash. The Company's common stock has ceased trading and will be delisted from Nasdaq.
Advisors
William Blair served as buyside financial advisers, Ropes & Gray served as legal counsel, ClearView Healthcare Partners served as commercial advisor and Alvarez & Marsal served as financial advisors to GHO and Ampersand.
Contacts:
GHO Capital
Amber Fennell / Kris Lam
ICR Healthcare
+44 7739658783
[email protected]
Avid Bioservices
Stephanie Diaz
Vida Strategic Partners
415-675-7401
[email protected]
Tim Brons
Vida Strategic Partners
415-675-7402
[email protected]
Aaron Palash / Allison Sobel
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
About GHO Capital
Global Healthcare Opportunities, or GHO Capital Partners LLP, is a leading specialist healthcare investment advisor based in London. GHO Capital applies global capabilities and perspectives to unlock high growth healthcare opportunities, targeting Pan-European and transatlantic internationalisation to build market leading businesses of strategic global value. GHO Capital’s proven investment track record reflects the unrivalled depth of our industry expertise and network. GHO Capital partners with strong management teams to generate long-term sustainable value, improving the efficiency of healthcare delivery to enable better, faster, more accessible healthcare. For further information, please visit www.ghocapital.com .
About Avid Bioservices, Inc.
Avid Bioservices is a dedicated CDMO focused on development and CGMP manufacturing of biologics. The Company provides a comprehensive range of process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With more than 30 years of experience producing biologics, Avid's services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. For early-stage programs the Company provides a variety of process development activities, including cell line development, upstream and downstream development and optimization, analytical methods development, testing and characterization. The scope of our services ranges from standalone process development projects to full development and manufacturing programs through commercialization. www.avidbio.com
About Ampersand Capital Partners
Ampersand Capital Partners, founded in 1988, is a middle-market private equity firm with $3 billion of assets under management, dedicated to growth-oriented investments in the healthcare sector. With offices in Boston, MA, and Amsterdam, Netherlands, Ampersand leverages a unique blend of private equity and operating experience to build value and drive long-term performance alongside its portfolio company management teams. Ampersand has helped build numerous market-leading companies across each of the firm's core healthcare sectors. For additional information, visit www.ampersandcapital.com or follow us on LinkedIn.
