Avid Bioservices poised for significant growth with new partners GHO Capital and Ampersand Capital Partners

Rhea-AI Summary

Avid Bioservices has been successfully acquired by GHO Capital Partners and Ampersand Capital Partners in an all-cash transaction valued at approximately $1.1 billion. The deal, which marks GHO's first public-to-private transaction, values Avid shares at $12.50 per share. Following the acquisition, Avid will be delisted from Nasdaq.

As a dedicated biologics Contract Development and Manufacturing Organisation (CDMO), Avid provides development and manufacturing services to biotechnology and pharmaceutical companies. The company has invested significantly in state-of-the-art facilities and expertise in bioprocess optimization, analytical testing, and regulatory compliance.

The new partnership aims to accelerate Avid's growth through expanded offerings, talent investment, and greater geographic reach. GHO brings considerable CDMO sector expertise through its portfolio investments, while Ampersand contributes deep industry knowledge to support Avid's next growth phase.

Positive

• All-cash acquisition at $1.1 billion provides immediate value to shareholders
• Strategic partnership with experienced CDMO investors could accelerate growth
• Access to additional resources for expansion and capability enhancement
• Potential for geographic expansion and service offering improvements

Negative

• Delisting from Nasdaq reduces liquidity for existing shareholders
• Loss of public trading status may limit future investment opportunities

Insights

Investment Banking Analyst

The $1.1 billion acquisition of Avid Bioservices represents a strategic consolidation in the high-growth biologics CDMO sector. This transaction is particularly noteworthy for several reasons:

First, the deal structure as a public-to-private transaction at $12.50 per share indicates strong confidence in Avid's underlying value proposition and growth potential in the biologics manufacturing space. The premium valuation reflects the scarcity of established CDMOs with proven capabilities in complex biologics manufacturing.

Second, the strategic fit with GHO Capital's existing CDMO portfolio companies (Ardena, Sterling Pharma Solutions, RoslinCT and Alcami) creates potential for significant operational synergies and knowledge sharing across the platform. This could accelerate Avid's technological capabilities and market reach, particularly in European markets where GHO has a strong presence.

Third, the timing of this acquisition aligns with increasing demand for biologics manufacturing capacity, driven by:

• Growing pipeline of complex biologics in development
• Shift towards outsourced manufacturing by both biotech and large pharma companies
• Increasing regulatory requirements driving demand for experienced CDMOs

The combination of Ampersand's life sciences expertise and GHO's CDMO sector experience positions Avid for accelerated growth through expanded service offerings and greater geographic reach. This could include potential bolt-on acquisitions to enhance capabilities in emerging modalities or expand manufacturing capacity.

• 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
ghocapital@icrhealthcare.com

Avid Bioservices

Stephanie Diaz
Vida Strategic Partners
415-675-7401
sdiaz@vidasp.com

Tim Brons
Vida Strategic Partners
415-675-7402
tbrons@vidasp.com

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.

FAQ

What is the acquisition price for Avid Bioservices (CDMO)?

Avid Bioservices is being acquired for approximately $1.1 billion, with shareholders receiving $12.50 per share in cash.

When will Avid Bioservices (CDMO) be delisted from Nasdaq?

Following the completion of the acquisition announced on February 5, 2025, Avid Bioservices' common stock has ceased trading and will be delisted from Nasdaq.

Who are the new owners of Avid Bioservices (CDMO)?

GHO Capital Partners LLP and Ampersand Capital Partners are the new owners of Avid Bioservices following the acquisition.

What are the expansion plans for Avid Bioservices (CDMO) under new ownership?

Under new ownership, Avid Bioservices plans to enhance capabilities, expand service offerings, invest in talent, and increase geographic reach with support from GHO and Ampersand's resources.

How will the acquisition affect Avid Bioservices (CDMO) operations?

The acquisition is expected to provide Avid with access to additional resources to accelerate growth, enhance capabilities, and expand service offerings while maintaining existing operations.