Catalent, Inc. (NYSE:CTLT), a Somerset, New Jersey-based global diversified provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products, acquired Paragon Bioservices, Inc., a viral vector development and manufacturing partner for gene therapies, for $1.2 billion.
John Chiminski, Catalent’s Chair & Chief Executive Officer.
Led by Pete Buzy, President and CEO, Paragon Bioservices is a private-equity-backed contract development and manufacturing organization (CDMO) whose focus is on the development and manufacturing of biopharmaceuticals, including gene therapies (AAV), next-generation vaccines, oncology immunotherapies (oncolytic viruses), and other complex biologics.
For over 25 years,
Existing investors included NewSpring Health Capital and Camden Partners.
Catalent intends to fund the transaction with the proceeds of a $650m incremental term loan under its existing senior secured credit facilities and the issuance of $650m of a new series of convertible preferred stock to funds affiliated with Leonard Green & Partners, L.P.
The transaction is subject to customary closing conditions, including the expiration of the waiting period under the U.S. antitrust laws, and is expected to close in the second quarter of 2019.
Upon completion, Paragon’s entire organization will remain under the leadership of Pete Buzy, with its management team and approximately 380 employees joining the Catalent team.
In conjunction with the investment in Catalent by the LGP funds, Peter Zippelius, a Partner at LGP, will join Catalent’s Board of Directors.
Catalent is the global provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products. With over 85 years serving the industry, the company employs over 11,000 people, including over 1,800 scientists, at more than 30 facilities across five continents, and in fiscal year 2018 generated approximately $2.5 billion in annual revenue.
Catalent Biologics provides advanced technologies and integrated solutions for biologic and biosimilar development and manufacturing, from DNA to fill/finish and commercial supply, through its extensive Biologics network including: Bloomington, Indiana, where the company recently announced a twentieth commercial launch of a fill/finish product, and Madison, Wisconsin, home of Catalent Biologics’ proprietary GPEx® technology for stable, high-yielding mammalian cell lines with eleven approved molecules.