Life sciences company Cambrex Corp. agreed to be acquired by an affiliate of London-based private equity firm Permira Advisers Ltd. for $60 per share in cash.
Including Cambrex's net debt, the transaction is valued at about $2.4 billion. The offer price represents a 47.1% premium to the company's closing price Aug. 6. The company's shares were up 46.84% to $59.88 in pre-market trading Aug. 6 after the deal announcement.
The agreement includes a 45-day go-shop period during which Cambrex may actively solicit acquisition proposals from third parties.
Permira plans to finance the transaction through a combination of debt and equity financing.
Completion of the deal is expected to occur in the fourth quarter subject to customary closing conditions, including approvals from Cambrex shareholders and customary regulatory authorities.
East Rutherford, N.J.-based Cambrex offers drug substance, drug product and analytical services for the small molecule industry.
Morgan Stanley & Co. LLC is acting as exclusive financial adviser to Cambrex, with Kirkland & Ellis LLP as legal adviser. RBC Capital Markets is serving as exclusive financial adviser, and provided committed debt financing to the Permira funds, while Skadden Arps Slate Meagher & Flom LLP is serving as legal adviser to the funds.