Aug 29, 2023 - Economy

Danaher paying $5.7 billion for the "Amazon of antibodies"

Illustration of a test tube pouring into a hundred dollar bill

Illustration: Aïda Amer/Axios

Danaher, a Washington, D.C.-based life sciences conglomerate, agreed to buy Abcam, a British provider of biological reagents for $5.7 billion in cash (including debt assumption).

Why it matters: Abcam is often called the "Amazon of antibodies," and will allow Danaher to provide its lab equipment customers with a broad range of consumables.

  • Reuters writes: "The deal will help Danaher cushion the hit from sluggish demand for some of its products from smaller biotech companies that are grappling with a funding crunch."

Details: Danaher will pay $24 per share, which represents around a 50% premium to where Abcam was trading before it acknowledged inbound interest.

  • There had been speculation that the premium could be even greater, given that Abcam says it engaged with "more than 20 potential strategic acquirers."
  • The merger seems unlikely to raise the hackles of U.S. or U.K. antitrust regulators.

Elsewhere: Danaher earlier this year kicked tires on New Jersey-based contract manufacturer Catalent, which reportedly will formally consider a sale process as part of a settlement with activist investor Elliott Management.

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