Thermo Fisher Scientific Inc. agreed to buy Brammer Bio LLC, a company focused on viral vector manufacturing for gene and cell therapies, for about $1.7 billion in cash.
The deal will expand Waltham, Mass.-based Thermo Fisher's capabilities in the high-growth gene and cell therapy market, which has recently seen a flurry of M&A activity. Cell and gene therapies feature an innovative method of treating — and potentially curing — diseases from cancer to rare disorders.
Brammer Bio, owned by Ampersand Capital Partners and its founders, is a contract development and manufacturing organization which helps companies develop and commercialize gene therapies. The company's main operations are in Massachusetts and Florida.
The privately held company "has executed more than 100 projects to supply first-in-human gene therapy clinical trials and establish commercial-ready processes, and we're excited to join Thermo Fisher to take our business to the next level," said Brammer President and CEO Mark Bamforth and Chief Scientific Officer Richard Snyder.
Brammer Bio, which is expected to generate revenues of $250 million in 2019, will join Thermo Fisher's pharma services division under the laboratory products and services segment.
Thermo Fisher, a provider of analytical instruments and laboratory equipment, said the deal will be accretive to adjusted EPS by 10 cents in the first full year of ownership.
The deal is subject to customary closing conditions and is expected to close in the second quarter of 2019.