STOCK TITAN

Avid Bioservices Files Investor Presentation Highlighting Value Maximizing Transaction with GHO and Ampersand

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Avid Bioservices (NASDAQ: CDMO) has filed an investor presentation regarding its pending transaction with GHO Capital Partners and Ampersand Capital Partners. The deal offers stockholders a significant premium, including a 63.8% premium to the June 4, 2024 closing price. The transaction resulted from a robust process where the Board rejected two initial proposals before conducting a broader search involving 24 potential parties, with seven conducting due diligence.

The deal's value exceeds trading multiples of comparable companies and represents a 24.9% premium to the company's discounted cash flow analysis. The Board highlights that while Avid has made strategic investments, additional funding is needed for growth potential. The company's five-year growth prospects were noted to be below previous guidance and analyst consensus.

A Special Meeting to vote on the transaction is scheduled for January 30, 2025, with stockholders of record as of December 11, 2024, eligible to vote. The Board unanimously recommends voting 'FOR' the transaction.

Avid Bioservices (NASDAQ: CDMO) ha presentato una presentazione agli investitori riguardo la sua transazione in corso con GHO Capital Partners e Ampersand Capital Partners. L'accordo offre agli azionisti un premio significativo, inclusa una maggiorazione del 63,8% rispetto al prezzo di chiusura del 4 giugno 2024. La transazione è il risultato di un processo solido in cui il Consiglio ha rifiutato due proposte iniziali prima di condurre una ricerca più ampia che ha coinvolto 24 parti potenziali, con sette impegnate nella due diligence.

Il valore dell'accordo supera i multipli di trading di aziende comparabili e rappresenta un premio del 24,9% rispetto all'analisi dei flussi di cassa scontati dell'azienda. Il Consiglio sottolinea che, sebbene Avid abbia effettuato investimenti strategici, è necessario ulteriore finanziamento per il potenziale di crescita. Le prospettive di crescita quinquennale dell'azienda sono state indicate come inferiori alle precedenti stime e al consenso degli analisti.

Una Riunione Speciale per votare sulla transazione è programmata per il 30 gennaio 2025, con gli azionisti registrati al 11 dicembre 2024, idonei a votare. Il Consiglio raccomanda unanimemente di votare 'A FAVORE' della transazione.

Avid Bioservices (NASDAQ: CDMO) ha presentado una presentación para inversores sobre su transacción pendiente con GHO Capital Partners y Ampersand Capital Partners. El acuerdo ofrece a los accionistas una prima significativa, incluyendo un 63,8% de prima sobre el precio de cierre del 4 de junio de 2024. La transacción resultó de un sólido proceso en el cual la Junta rechazó dos propuestas iniciales antes de realizar una búsqueda más amplia con 24 partes potenciales, de las cuales siete realizaron la debida diligencia.

El valor del acuerdo supera los múltiplos de negociación de empresas comparables y representa una prima del 24,9% sobre el análisis de flujo de caja descontado de la empresa. La Junta destaca que, aunque Avid ha realizado inversiones estratégicas, se necesita financiación adicional para el potencial de crecimiento. Las perspectivas de crecimiento a cinco años de la compañía se han indicado como inferiores a las guías previas y al consenso de los analistas.

Se programó una Reunión Especial para votar sobre la transacción el 30 de enero de 2025, con los accionistas registrados a partir del 11 de diciembre de 2024, que son elegibles para votar. La Junta recomienda unánimemente votar 'A FAVOR' de la transacción.

Avid Bioservices (NASDAQ: CDMO)는 GHO Capital Partners 및 Ampersand Capital Partners와의 진행 중인 거래에 대한 투자자 프레젠테이션을 제출했습니다. 이 거래는 주주에게 상당한 프리미엄을 제공하며, 2024년 6월 4일 종가에 대해 63.8%의 프리미엄을 포함합니다. 이 거래는 이사회가 두 개의 초기 제안을 거부한 후 24개의 잠재적 당사자를 대상으로 광범위한 탐색을 진행한 견고한 프로세스의 결과입니다. 이 중 7개 당사자가 실사를 진행했습니다.

이 거래의 가치는 유사 회사의 거래 배수보다 뛰어나며, 회사의 할인된 현금 흐름 분석에 비해 24.9%의 프리미엄을 나타냅니다. 이사회는 Avid가 전략적 투자를 했지만, 성장 잠재력을 위해 추가적인 자금이 필요하다고 강조합니다. 회사의 5년 성장 전망은 이전 가이드라인 및 분석가의 합의보다 낮은 것으로 나타났습니다.

이 거래에 대한 투표를 위한 특별 회의는 2025년 1월 30일로 예정되어 있으며, 2024년 12월 11일 기준으로 등록된 주주가 투표할 자격이 있습니다. 이사회는 거래에 '찬성' 투표를 할 것을 만장일치로 권장합니다.

Avid Bioservices (NASDAQ: CDMO) a déposé une présentation pour investisseurs concernant sa transaction en cours avec GHO Capital Partners et Ampersand Capital Partners. L'accord offre aux actionnaires une prime significative, y compris une prime de 63,8 % par rapport au prix de clôture du 4 juin 2024. La transaction a résulté d'un processus rigoureux où le conseil d'administration a rejeté deux propositions initiales avant de mener une recherche plus large impliquant 24 parties potentielles, dont sept ont réalisé une diligence raisonnable.

La valeur de l'accord dépasse les multiples de négociation des entreprises comparables et représente une prime de 24,9 % par rapport à l'analyse des flux de trésorerie actualisés de l'entreprise. Le conseil d'administration souligne que, bien qu'Avid ait effectué des investissements stratégiques, un financement supplémentaire est nécessaire pour le potentiel de croissance. Les perspectives de croissance à cinq ans de la société sont jugées inférieures aux prévisions précédentes et au consensus des analystes.

Une réunion spéciale pour voter sur la transaction est prévue pour le 30 janvier 2025, avec les actionnaires enregistrés à partir du 11 décembre 2024, éligibles pour voter. Le conseil d'administration recommande à l'unanimité de voter 'POUR' la transaction.

Avid Bioservices (NASDAQ: CDMO) hat eine Präsentation für Investoren hinsichtlich der bevorstehenden Transaktion mit GHO Capital Partners und Ampersand Capital Partners eingereicht. Der Deal bietet den Aktionären eine signifikante Prämie, einschließlich einer Prämie von 63,8 % zum Schlusskurs vom 4. Juni 2024. Die Transaktion resultierte aus einem soliden Prozess, bei dem der Vorstand zwei erste Vorschläge ablehnte, bevor eine umfassendere Suche nach 24 potenziellen Parteien durchgeführt wurde, von denen sieben eine due diligence durchführten.

Der Wert des Deals übersteigt die Handelsmultiplikatoren vergleichbarer Unternehmen und stellt eine Prämie von 24,9 % gegenüber der discounted cash flow-Analyse des Unternehmens dar. Der Vorstand hebt hervor, dass Avid zwar strategische Investitionen getätigt hat, jedoch zusätzliche Mittel benötigt werden, um das Wachstumspotenzial zu fördern. Die Wachstumsaussichten des Unternehmens für die nächsten fünf Jahre wurden als unter den vorherigen Vorgaben und dem Konsens der Analysten liegend festgestellt.

Eine Sonderversammlung zur Abstimmung über die Transaktion ist für den 30. Januar 2025 angesetzt, und Aktionäre, die am 11. Dezember 2024 im Aktienregister stehen, sind abstimmungsberechtigt. Der Vorstand empfiehlt einstimmig, der Transaktion 'ZUSTIMMUNG' zu geben.

Positive
  • 63.8% premium offered to June 4, 2024 closing price
  • 24.9% premium to company's discounted cash flow analysis
  • Transaction provides immediate and certain cash value to shareholders
  • Deal multiples exceed all comparable public companies
Negative
  • Company's growth prospects below previous guidance and analyst consensus
  • Additional funding needed for growth initiatives
  • Industry facing various challenges affecting market pricing

Insights

This transaction represents a compelling exit opportunity for CDMO shareholders. The $21.00 per share deal price delivers a substantial 63.8% premium to Avid's pre-announcement trading price, significantly exceeding typical M&A premiums in the biotech services sector. The valuation multiples surpass those of comparable public companies, indicating strong pricing relative to industry benchmarks.

The Board's strategic review process was thorough and competitive, involving 24 potential buyers and multiple rounds of bidding. GHO and Ampersand's final offer represents a 24.9% premium to management's DCF valuation, suggesting the deal captures future growth potential while providing immediate liquidity. The presence of two credible private equity firms with deep healthcare expertise adds strategic merit to this transaction.

From a risk-reward perspective, this deal provides certainty of value in an increasingly challenging biologics CDMO market where additional capital investment would be required to maintain competitiveness. The transaction effectively transfers execution and funding risks to the buyers while delivering guaranteed returns to current shareholders.

The transaction structure and process demonstrate strong corporate governance and fiduciary duty fulfillment. The Board's rejection of two initial proposals before engaging in broader market outreach shows active price negotiation. The competitive bidding process involving multiple NDAs and preliminary bids helps establish deal price fairness.

The proxy solicitation timing and mechanics appear standard, with a reasonable 50-day period between record date and special meeting. The engagement of MacKenzie Partners for proxy solicitation and Moelis as financial advisor reflects appropriate use of qualified third-party advisors to ensure process integrity.

Notably, the Board's unanimous recommendation and detailed investor presentation satisfy disclosure obligations while building a strong record supporting their decision. The premium analysis across multiple timeframes and valuation methodologies provides robust support for the deal terms.

Avid Urges Stockholders to Vote FOR the Pending Transaction TODAY

TUSTIN, Calif., Jan. 08, 2025 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ: CDMO) (“Avid” or the “Company”), a dedicated biologics contract development and manufacturing organization (“CDMO”) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today posted an investor presentation in connection with its pending transaction with GHO Capital Partners LLP (“GHO”) and Ampersand Capital Partners (“Ampersand”) on its investor relations website.

Highlights of the presentation include:

  • The transaction with GHO and Ampersand delivers significant, immediate and certain cash value to Avid stockholders:
    • The transaction presents a significant premium to the Company’s share price across multiple time periods, including a 63.8% premium to its closing price on June 4, 2024, the last trading day prior to GHO and Ampersand’s initial proposal;
    • The robust implied multiples exceed the trading multiples of all selected publicly traded comparable companies;1 and
    • The transaction delivers a meaningful premium relative to the Company’s intrinsic value, representing a 24.9% premium to the midpoint of the Company’s discounted cash flow analysis based on management’s probability-adjusted five-year plan, which is significantly higher than the consensus of its peers.
  • The robust process conducted by the Avid Board of Directors maximizes value for stockholders:
    • The Board rejected GHO and Ampersand’s two initial proposals (June 5 Initial Proposal and June 23 Revised Proposal) before engaging in further sale discussions with GHO and Ampersand and authorizing outreach to other potential parties;
    • The Board directed Moelis to run a process that included the 24 strategic and financial parties most likely to be interested in the sale of the Company; and
    • The competitive process included seven parties conducting diligence under NDA and two preliminary bids, before entering final negotiations and resulting in the proposed transaction with GHO and Ampersand.
  • The transaction de-risks for stockholders Avid’s future as a standalone company:
    • There are a range of tailwinds and challenges facing the biologics manufacturing industry that the market had already priced in prior to the sale announcement;
    • While Avid has made a number of strategic investments in the business over the last several years, more funding and investment is needed to capitalize on the Company’s growth potential; and
    • Financial analysis of Avid’s probability-adjusted five-year plan indicate that the Company’s growth prospects were below its own previous guidance as well as analysts’ consensus.

The presentation has also been filed with the U.S. Securities and Exchange Commission (the “SEC”). The Special Meeting to vote on the transaction is scheduled for January 30, 2025, and Avid stockholders of record as of December 11, 2024, are eligible to vote at the Special Meeting.


VOTE TODAY

The Avid Board of Directors Unanimously Recommends that Avid Stockholders Vote “FOR” the proposed transaction with GHO and Ampersand.

Vote TODAY online, by telephone or by signing and returning the enclosed proxy card.

If you have questions or need assistance voting your shares, please contact:

MacKenzie Partners, Inc.

7 Penn Plaza
New York, New York 10001
U.S. & Canada Toll-Free: 1-800-322-2885
Elsewhere Call Collect: +1-212-929-5500
Or
Email: proxy@MacKenziePartners.com


Advisors

Moelis & Company LLC is serving as exclusive financial advisor to Avid, and Cooley LLP is serving as legal counsel to Avid.

About Avid Bioservices, Inc.

Avid Bioservices (NASDAQ: CDMO) is a dedicated CDMO focused on development and CGMP manufacturing of biologics. The Company provides a comprehensive range of process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With more than 30 years of experience producing biologics, Avid's services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. For early-stage programs the Company provides a variety of process development activities, including cell line development, upstream and downstream development and optimization, analytical methods development, testing and characterization. The scope of our services ranges from standalone process development projects to full development and manufacturing programs through commercialization. www.avidbio.com

ADDITIONAL INFORMATION AND WHERE TO FIND IT

The Company has filed a proxy statement with the U.S. Securities and Exchange Commission (“SEC”) with respect to a special meeting of stockholders to be held in connection with the proposed transaction. Promptly after filing the definitive proxy statement with the SEC, the Company mailed the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting to consider the proposed transaction. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, the preliminary and definitive versions of the proxy statement, any amendments or supplements thereto, and any other relevant documents filed by the Company with the SEC in connection with the proposed transaction at the SEC’s website (http://www.sec.gov). Copies of the preliminary and definitive versions of the proxy statement, any amendments or supplements thereto, and any other relevant documents filed by the Company with the SEC in connection with the proposed transaction will also be available, free of charge, at the Company’s investor relations website (https://ir.avidbio.com/sec-filings). The information provided on, or accessible through, our website is not part of this press release, and therefore is not incorporated herein by reference.

PARTICIPANTS IN THE SOLICITATION

The Company and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding the Company’s directors and executive officers is available in the Company’s definitive proxy statement for the January 30, 2025 special meeting of stockholders, which was filed with the SEC on December 18, 2024 (the “Special Meeting Proxy Statement”). Please refer to the sections captioned “Security Ownership of Certain Beneficial Owners, Directors and Management” and “Interests of Avid’s Directors and Executive Officers in the Merger” in the Special Meeting Proxy Statement. To the extent holdings of such participants in the Company’s securities have changed since the amounts described in the Special Meeting Proxy Statement, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC: Form 4, filed by Nicholas Stewart Green on January 2, 2025, Form 4, filed by Daniel R. Hart on January 2, 2025, and Form 4, filed by Richard A. Richieri on January 2, 2025. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Special Meeting Proxy Statement and other relevant materials filed with the SEC in connection with the proposed transaction. Free copies of the Special Meeting Proxy Statement and such other materials may be obtained as described in the preceding paragraph.

FORWARD-LOOKING STATEMENTS

This communication contains “forward-looking statements” which include, but are not limited to, all statements that do not relate solely to historical or current facts, such as statements regarding the Company’s expectations, intentions or strategies regarding the future, or the completion or effects of the proposed sale of Avid to GHO and Ampersand. In some cases, these statements include words like: “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue” and “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The Company’s expectations and beliefs regarding these matters may not materialize. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of uncertainties, risks, and changes in circumstances, including but not limited to risks and uncertainties related to: the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction that could delay the consummation of the proposed transaction or cause the parties to abandon the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement entered into in connection with the proposed transaction; the possibility that the Company’s stockholders may not approve the proposed transaction; the risk that the parties to the merger agreement may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s common stock; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; and the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain and hire key personnel and to maintain relationships with customers, vendors, partners, employees, stockholders and other business relationships and on its operating results and business generally. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in the Company’s most recent filings with the SEC, including the Company’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2024 and any subsequent reports on Form 10-K, Form 10-Q or Form 8-K filed with the SEC from time to time and available at http://www.sec.gov.

The forward-looking statements included in this information statement are made only as of the date hereof. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Contacts:

Avid Bioservices

Stephanie Diaz (Investors)
Vida Strategic Partners
415-675-7401
sdiaz@vidasp.com

Tim Brons
Vida Strategic Partners
415-675-7402
tbrons@vidasp.com

Bob Marese / John Bryan (For Voting Inquiries)
MacKenzie Partners, Inc.
1-800-322-2885
proxy@MacKenziePartners.com

Aaron Palash / Allison Sobel (Media)
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

1 Selected publicly traded comparable companies include Bachem, Catalent, Lonza, Oxford Biomedica and PolyPeptide (refer to proxy filing materials for additional information)


FAQ

What premium does GHO and Ampersand's offer represent for CDMO shareholders?

The offer represents a 63.8% premium to Avid Bioservices' closing price on June 4, 2024, and a 24.9% premium to the midpoint of the company's discounted cash flow analysis.

When is the Special Meeting for CDMO shareholders to vote on the GHO-Ampersand transaction?

The Special Meeting is scheduled for January 30, 2025, with stockholders of record as of December 11, 2024, eligible to vote.

How many companies were considered during CDMO's sale process?

The Board directed a process that included 24 strategic and financial parties, with seven conducting due diligence under NDA and two submitting preliminary bids.

Why is Avid Bioservices (CDMO) selling to GHO and Ampersand?

The company requires additional funding for growth initiatives, faces industry challenges, and has growth prospects below previous guidance. The transaction provides immediate value to shareholders while de-risking their investment.

Avid Bioservices, Inc.

NASDAQ:CDMO

CDMO Rankings

CDMO Latest News

CDMO Stock Data

793.78M
62.85M
1.13%
104.32%
18.2%
Biotechnology
Pharmaceutical Preparations
Link
United States of America
TUSTIN