Upon closing of the transaction, Aldevron will operate as an individual company and a brand operating within Danaher's Life Sciences business unit
US-based global conglomerate Danaher has agreed to acquire privately-held biologics manufacturer Aldevron for a purchase price of about $9.6bn in cash.
Danaher is planning to finance the acquisition using available cash on hand along with proceeds from the issuance of commercial paper.
The closing of the transaction is subject to customary conditions, including the receipt of necessary regulatory approvals.
Upon closing of the transaction, Aldevron will operate as an individual company and a brand operating within Danaher’s Life Sciences business unit.
Aldevron founder and executive chairman Michael Chambers said: “Joining Danaher will help us expand our global reach and harness the power of the Danaher Business System to continue supporting our customers with best-in-class products and services.
“I’m incredibly excited for Aldevron to take this pivotal next step with Danaher and look forward to the tremendous impact we can make together in the expanding area of genomic medicine.”
Established in 1998, in Fargo, North Dakota, Aldevron is engaged in producing plasmid DNA, mRNA, proteins, enzymes, and other biologicals.
With around 600 employees, the company serves biotechnology and pharmaceutical customers across research, clinical and commercial applications.
Recently, it has completed the construction and validation of a new 189,000ft² GMP manufacturing facility on its 14-acre Breakthrough Campus in Fargo.
Aldevron has been contracted by Moderna to supply plasmid DNA required of the latter’s mRNA vaccine, which has been authorised in more than 40 countries, including in the US.
Also, Danaher has signed an agreement with the US government to expand the manufacturing of components and products required for Covid-19 vaccines manufacturing.
Danaher president and CEO Rainer Blair said: “We are thrilled to have Aldevron join Danaher’s Life Sciences segment. For nearly 25 years, Aldevron has made tremendous contributions to the advancement of cell, gene and other novel therapies and vaccines.
“This acquisition will expand our capabilities into the important field of genomic medicine and help us support our customers and their critical mission to bring more life-saving therapies and vaccines to market faster.”
Morgan Stanley served as an exclusive financial advisor, and Simpson Thacher & Bartlett provided legal counsel to Aldevron on the transaction.