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BFD Expert Voices - Health Tech Deals

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GHO Capital and Ampersand Capital will acquire Avid Bioservices (NASDAQ: CDMO) for $1.1 billion.

Why it's the BFD: Between them, the two PE firms can boast a robust pharma services investment portfolio.

Zoom in: GHO and Ampersand offered $12.50 per share in cash, a 13.8% premium to the contract manufacturing and development organization's last closing price.

Avid helps develop and manufacture biologics, specializing in viral vector design for gene therapy and vaccine applications.

The CDMO has two GMP biologics facilities and a viral vector development plant in California.

What's next: The transaction is expected to close in 1Q25.

Catch up quick: Avid spun out from biopharma firm Peregrine Pharmaceuticals as a standalone CDMO in 2018.

GHO already owns CDMOs Alcami, Roslin GT, Ardena and Sterling Pharma Solutions.

Ampersand also owns part of Alcami, along with Recipharm and viral vector manufacturer Genezen. Ampersand sold CDMO Brammer Bio to Thermo Fisher for $1.7 billion in 2019.

The big picture: With more than 6,000 drug candidates in development currently, large drug companies are increasingly outsourcing R&D processes, driving demand for pharma services providers.

Pharma services is especially attractive for PE, who can count on a diverse mix of eventual strategic acquirers when they exit these businesses.

The bottom line: GHO and Ampersand are building a powerful CDMO engine.

GHO, Ampersand take Avid Bioservices private for $1.1B

Between them, the two PE firms can boast a robust pharma services investment portfolio.

Illustration of hands in a suit chiseling a dollar sign into a pill

Health tech deals

GHO Capital <a class="gtmContentClick" data-vars-link-text="and Ampersand Capital " data-vars-click-url="https://link.axios.com/click/37389958.1384/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9oZWFsdGgtdGVjaC1kZWFscy8yMDIyLzExLzA4L2doby1hbmQtdmlzdHJpYS1zbmFwLXVwLW1hZGlzb24tZGVhcmJvcm5zLWFsY2FtaT91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2hlYWx0aHRlY2hfc3VicyZzdHJlYW09dG9w/63d7efa24889932dcb08ba1cB290507dd" data-vars-content-id="1662879c-435f-470d-ba91-5cf9f1b21c80" data-vars-headline="GHO, Ampersand take Avid Bioservices private for $1.1B" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/37389958.1384/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9oZWFsdGgtdGVjaC1kZWFscy8yMDIyLzExLzA4L2doby1hbmQtdmlzdHJpYS1zbmFwLXVwLW1hZGlzb24tZGVhcmJvcm5zLWFsY2FtaT91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2hlYWx0aHRlY2hfc3VicyZzdHJlYW09dG9w/63d7efa24889932dcb08ba1cB290507dd" target="_self">and Ampersand Capital </a>will acquire Avid Bioservices (NASDAQ: CDMO) <a class="gtmContentClick" data-vars-link-text="for $1.1 billion" data-vars-click-url="https://link.axios.com/click/37389958.1384/aHR0cHM6Ly93d3cuZ2xvYmVuZXdzd2lyZS5jb20vbmV3cy1yZWxlYXNlLzIwMjQvMTEvMDYvMjk3NjIxNi8wL2VuL0F2aWQtQmlvc2VydmljZXMtdG8tYmUtQWNxdWlyZWQtYnktR0hPLUNhcGl0YWwtUGFydG5lcnMtYW5kLUFtcGVyc2FuZC1DYXBpdGFsLVBhcnRuZXJzLWluLTEtMS1CaWxsaW9uLVRyYW5zYWN0aW9uLmh0bWw_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19oZWFsdGh0ZWNoX3N1YnMmc3RyZWFtPXRvcA/63d7efa24889932dcb08ba1cBb944a860" data-vars-content-id="1662879c-435f-470d-ba91-5cf9f1b21c80" data-vars-headline="GHO, Ampersand take Avid Bioservices private for $1.1B" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/37389958.1384/aHR0cHM6Ly93d3cuZ2xvYmVuZXdzd2lyZS5jb20vbmV3cy1yZWxlYXNlLzIwMjQvMTEvMDYvMjk3NjIxNi8wL2VuL0F2aWQtQmlvc2VydmljZXMtdG8tYmUtQWNxdWlyZWQtYnktR0hPLUNhcGl0YWwtUGFydG5lcnMtYW5kLUFtcGVyc2FuZC1DYXBpdGFsLVBhcnRuZXJzLWluLTEtMS1CaWxsaW9uLVRyYW5zYWN0aW9uLmh0bWw_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19oZWFsdGh0ZWNoX3N1YnMmc3RyZWFtPXRvcA/63d7efa24889932dcb08ba1cBb944a860" target="_self">for $1.1 billion</a>.Why it&#x27;s the BFD: Between them, the two PE firms can boast a robust <a class="gtmContentClick" data-vars-link-text="pharma services investment" data-vars-click-url="https://link.axios.com/click/37389958.1384/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9oZWFsdGgtdGVjaC1kZWFscy8yMDI0LzA3LzA4L3ByaXZhdGUtZXF1aXR5LXBoYXJtYS1zZXJ2aWNlcy1kZWFscz91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2hlYWx0aHRlY2hfc3VicyZzdHJlYW09dG9w/63d7efa24889932dcb08ba1cB46280f7c" data-vars-content-id="1662879c-435f-470d-ba91-5cf9f1b21c80" data-vars-headline="GHO, Ampersand take Avid Bioservices private for $1.1B" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/37389958.1384/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9oZWFsdGgtdGVjaC1kZWFscy8yMDI0LzA3LzA4L3ByaXZhdGUtZXF1aXR5LXBoYXJtYS1zZXJ2aWNlcy1kZWFscz91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2hlYWx0aHRlY2hfc3VicyZzdHJlYW09dG9w/63d7efa24889932dcb08ba1cB46280f7c" target="_self">pharma services investment</a> portfolio.

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GHO, Ampersand take Avid Bioservices private for $1.1B

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