Contract drug manufacturer Catalent, Inc. agreed Monday to acquire all outstanding equity of closely-held Paragon Bioservices, Inc. for $1.2 billion in cash on a cash-free, debt-free basis. It will provide Catalent new expertise and capabilities in one of the fastest-growing areas of healthcare, positioning it for accelerated long-term growth.
Paragon is expected to achieve more than $200 million in revenue in calendar year 2019, with nearly 90% of this revenue target already reflected in signed contracts.
Catalent expects the transaction to be accretive to its adjusted net income per share in the second full fiscal year after closing, and significantly accretive thereafter.
Catalent intends to fund the transaction with the proceeds of a $650 million incremental term loan under its existing senior secured credit facilities and the issuance of $650 million of a new series of convertible preferred stock to funds affiliated with Leonard Green & Partners, L.P. (LGP), although the acquisition is not subject to a financing condition.
Catalent will use the funds remaining from these financings, after the payment of the purchase price and the fees and expenses associated with the transaction, to pay a portion of the costs of capital expansion projects currently underway at Paragon's facilities in Maryland, with the remaining costs to be paid with cash on hand. The incremental term loan and the issuance of the convertible preferred stock are each conditioned upon the closing of the acquisition.
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 of the transaction, Paragon's entire organization will remain under the leadership of Pete Buzy, with its industry-leading 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, marking the beginning of a long-term strategic partnership.
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合同药品制造商 Catalent , Inc .周一同意以12亿美元现金，在无现金、无债务的基础上，以现金收购紧密持有的 Paragon Bioservices , Inc .的全部未偿股权。它将在医疗保健增长最快的领域之一提供 Catalent 新的专业知识和能力，为加速长期增长做好准备。
预计 Paragon 将在2019年的日历年度实现2亿多美元的收入，其中近90%的收入目标已经反映在已签署的合同中。
Catalent 打算通过现有高级担保信贷安排下的6.5亿美元增量定期贷款和向 Leonard Green & Partners , L.P .( LGP )旗下基金发行6.5亿美元新系列可转换优先股来为这笔交易提供资金。虽然收购不受融资条件的限制。
Catalent 将使用这些融资剩余的资金，在支付购买价款和与交易相关的费用和开支后，支付目前在马里兰州 Paragon 工厂正在进行的资本扩张项目的部分费用，剩余的费用将用手头现金支付。增量定期贷款和发行可转换优先股均以收购完成为条件。
交易完成后， Paragon 的整个组织仍将由 Pete Buzy 领导，其行业领先的管理团队和大约380名员工加入 Catalent 团队。
随着 LGP 基金对 Catalent 的投资， LGP 合伙人 Peter Zippelius 将加入 Catalent 的董事会，标志着长期战略合作伙伴关系的开始。
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