Avid Reminds Stockholders to Vote Today FOR the Transaction with GHO and Ampersand
Avid Bioservices (NASDAQ: CDMO) has issued a letter to stockholders urging them to vote in favor of the pending transaction with GHO Capital Partners LLP and Ampersand Capital Partners at the Special Meeting scheduled for January 30, 2025. The transaction offers significant premiums, including a 63.8% premium to comparable companies' trading multiples and a 24.9% premium to the company's closing price of $7.63 on June 4, 2024.
The Board conducted a robust process, involving 24 potential buyers, with seven parties conducting due diligence and two preliminary bids before final negotiations. Leading proxy advisory firms ISS and Glass Lewis have recommended voting FOR the transaction. The deal addresses several challenges, including industry-wide uncertainty, need for additional investments, and updated growth expectations below previous guidance.
Avid Bioservices (NASDAQ: CDMO) ha inviato una lettera agli azionisti esortandoli a votare a favore della transazione in corso con GHO Capital Partners LLP e Ampersand Capital Partners durante la Riunione Straordinaria fissata per il 30 gennaio 2025. L'operazione offre premi significativi, inclusi un premio del 63,8% rispetto ai multipli di trading di società comparabili e un premio del 24,9% rispetto al prezzo di chiusura della società di $7,63 del 4 giugno 2024.
Il Consiglio ha condotto un processo robusto, coinvolgendo 24 potenziali acquirenti, con sette parti che hanno svolto la due diligence e due offerte preliminari prima delle negoziazioni finali. Le principali società di consulenza sul voto, ISS e Glass Lewis, hanno raccomandato di votare a favore dell'operazione. L'accordo affronta diverse sfide, inclusa l'incertezza a livello industriale, la necessità di investimenti aggiuntivi e le aspettative di crescita aggiornate al di sotto delle precedenti indicazioni.
Avid Bioservices (NASDAQ: CDMO) ha emitido una carta a los accionistas instándoles a votar a favor de la transacción pendiente con GHO Capital Partners LLP y Ampersand Capital Partners en la Junta Especial programada para el 30 de enero de 2025. La transacción ofrece primas significativas, incluyendo un 63.8% de prima en comparación con los múltiplos de negociación de empresas comparables y un 24.9% de prima sobre el precio de cierre de la empresa de $7.63 el 4 de junio de 2024.
La Junta llevó a cabo un proceso robusto, involucrando a 24 compradores potenciales, con siete partes realizando la debida diligencia y dos ofertas preliminares antes de las negociaciones finales. Las principales firmas de asesoría de votación, ISS y Glass Lewis, han recomendado votar A FAVOR de la transacción. El acuerdo aborda varios desafíos, incluyendo la incertidumbre en toda la industria, la necesidad de inversiones adicionales y las expectativas de crecimiento actualizadas por debajo de la guía previa.
Avid Bioservices (NASDAQ: CDMO)는 주주들에게 GHO Capital Partners LLP 및 Ampersand Capital Partners와의 진행 중인 거래에 찬성표를 던질 것을 요청하는 편지를 발송했습니다. 이 특별 회의는 2025년 1월 30일로 예정되어 있습니다. 이 거래는 비슷한 기업의 거래 배수에 비해 63.8%의 프리미엄과 2024년 6월 4일 $7.63의 회사 종가에 비해 24.9%의 프리미엄을 포함하여 상당한 프리미엄을 제공합니다.
이사회는 24명의 잠재 구매자를 포함한 강력한 프로세스를 수행했으며, 7곳이 실사를 진행하고 2곳이 초기 입찰을 한 후 최종 협상을 진행했습니다. 주요 의결권 자문 회사인 ISS와 Glass Lewis는 거래에 찬성하는 투표를 권장했습니다. 이 거래는 산업 전반의 불확실성, 추가 투자 필요성, 이전 지침보다 낮은 성장 기대치 등 여러 과제를 해결합니다.
Avid Bioservices (NASDAQ: CDMO) a envoyé une lettre aux actionnaires les exhortant à voter en faveur de la transaction en cours avec GHO Capital Partners LLP et Ampersand Capital Partners lors de l'Assemblée Générale Extraordinaire prévue le 30 janvier 2025. La transaction offre des primes significatives, y compris une prime de 63,8 % par rapport aux multiples de négociation des entreprises comparables et une prime de 24,9 % par rapport au prix de clôture de l'entreprise de 7,63 $ le 4 juin 2024.
Le Conseil a mené un processus solide, impliquant 24 acheteurs potentiels, avec sept parties effectuant une due diligence et deux offres préliminaires avant les négociations finales. Les principales sociétés de conseil en vote, ISS et Glass Lewis, ont recommandé de voter POUR la transaction. L'accord aborde plusieurs défis, y compris l'incertitude sectorielle, le besoin d'investissements supplémentaires et des attentes de croissance mises à jour en dessous des prévisions précédentes.
Avid Bioservices (NASDAQ: CDMO) hat einen Brief an die Aktionäre veröffentlicht, in dem sie aufgefordert werden, für die bevorstehende Transaktion mit GHO Capital Partners LLP und Ampersand Capital Partners bei der für den 30. Januar 2025 geplanten außerordentlichen Hauptversammlung zu stimmen. Die Transaktion bietet erhebliche Aufschläge, einschließlich eines Aufschlags von 63,8 % im Vergleich zu den Handelsmultiplikatoren vergleichbarer Unternehmen und eines Aufschlags von 24,9 % auf den Schlusskurs des Unternehmens von $7,63 am 4. Juni 2024.
Der Vorstand führte einen umfassenden Prozess durch, an dem 24 potenzielle Käufer beteiligt waren, wobei sieben Parteien eine Due Diligence durchführten und zwei Vorabangebote vor den endgültigen Verhandlungen abgaben. Führende Stimmrechtsberatungsunternehmen wie ISS und Glass Lewis haben empfohlen, für die Transaktion zu stimmen. Der Deal greift mehrere Herausforderungen auf, darunter Unsicherheiten in der Branche, den Bedarf an zusätzlichen Investitionen und aktualisierte Wachstumserwartungen, die unter der vorherigen Anleitung liegen.
- Transaction offers 63.8% premium compared to peer companies' trading multiples
- 24.9% premium to last trading price before initial proposal
- Competitive sale process involving 24 potential buyers
- Unanimous Board recommendation and support from major proxy advisory firms
- Company's growth prospects below previous guidance and analyst consensus
- Requires significant additional funding and investment
- Facing industry-wide challenges in biologics manufacturing
Insights
The pending
Premium Analysis & Valuation Context: The
Strategic Rationale & Industry Implications: The acquisition by GHO and Ampersand, both experienced healthcare investors, signals strong strategic interest in the CDMO sector despite near-term headwinds. The involvement of two private equity firms suggests potential plans for:
- Accelerated capital deployment for facility expansion
- Operational improvements away from public market pressures
- Possible platform for future CDMO consolidation
Process & Market Dynamics: The robust sale process involving 24 parties and multiple rounds of bidding indicates healthy buyer interest despite industry challenges. The Board's rejection of two initial proposals before accepting the final offer demonstrates effective negotiation leverage. The unanimous Board recommendation and support from proxy advisory firms ISS and Glass Lewis adds credibility to the valuation.
Risk Mitigation: The transaction effectively addresses several key risks:
- Capital intensity requirements for future growth
- Industry uncertainty and competitive pressures
- Execution risks of meeting public market growth expectations
For retail investors, this deal offers an attractive exit opportunity given the uncertain standalone outlook and capital needs. The cash consideration provides certainty compared to the execution risks of remaining independent in a challenging market environment.
Mails Letter to Stockholders Highlighting the Significant, Immediate and Certain Cash Value the Transaction Delivers to Stockholders
TUSTIN, Calif., Jan. 22, 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 announced that it has mailed a letter to stockholders in connection with its pending transaction with GHO Capital Partners LLP (“GHO”) and Ampersand Capital Partners (“Ampersand”).
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.
The letter reiterates the:
- Significant, immediate and certain cash value the transaction delivers to Avid stockholders;
- Robust process conducted by the Avid Board of Directors to maximize stockholder value; and
- De-risking of Avid’s future as a standalone company for stockholders.
The full text of the letter follows:
January 22, 2025
Dear Fellow Avid Bioservices Stockholders,
We are reaching out to remind you to vote FOR our pending transaction with GHO Capital Partners LLP (“GHO”) and Ampersand Capital Partners (“Ampersand”).
Leading independent proxy advisory firms Institutional Shareholder Services (“ISS”) and Glass Lewis & Co. (“Glass Lewis”) recognize the significant, immediate and certain cash value the transaction delivers to Avid stockholders. They recommend that you vote FOR the transaction.
| Compelling Valuation at a Significant Premium Across Multiple Time Periods | A significant premium to the trading multiples of comparable publicly traded companies;1 | ||
| Premium to the Company’s closing price of | Premium to the midpoint of the Company’s discounted cash flow analysis2 , which is significantly higher than the consensus of its peers |
| Robust process conducted by the Avid Board of Directors maximizes value for stockholders |
|
| De-risks for stockholders Avid’s future as a standalone company |
|
YOUR VOTE MATTERS: TAKE ACTION AND VOTE TODAY
We strongly encourage you to vote “FOR” the transaction today so, you can obtain significant, immediate and certain value for your Avid investment.
Regardless of how many shares you own, your vote matters. You can vote online, by phone or by signing and returning the proxy card that was mailed with the Company’s definitive proxy materials.
Thank you for your continued support.
Sincerely,
The Avid Bioservices Board of Directors
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 are also 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, Form 4, filed by Richard A. Richieri on January 2, 2025, and Form 4, filed by Richard A. Richieri on January 13, 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.
______________________________
1 Selected publicly traded comparable companies include Bachem, Catalent, Lonza, Oxford Biomedica and PolyPeptide (refer to proxy filing materials for additional information)
2 Based on management’s probability-adjusted five-year plan
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
FAQ
What premium does GHO and Ampersand's offer represent for CDMO shareholders?
When is the Special Meeting for CDMO shareholders to vote on the GHO-Ampersand transaction?
How many potential buyers were involved in CDMO's sale process?
What are the key challenges facing CDMO as a standalone company?
