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Danaher Corporation has announced that it has entered into a definitive agreement to acquire Aldevron from EQT Private Equity for an enterprise value of $9.6 billion.
Danaher will finance the acquisition using cash on hand and proceeds from the issuance of commercial paper.
“We are thrilled to have Aldevron join Danaher’s Life Sciences segment. For nearly 25 years, Aldevron has made tremendous contributions to the advancement of cell, gene and other novel therapies and vaccines. This acquisition will expand our capabilities into the important field of genomic medicine and help us support our customers and their critical mission to bring more life-saving therapies and vaccines to market faster,” said Rainer M. Blair, Danaher President and Chief Executive Officer.
Aldevron will operate as a standalone operating company and brand within Danaher’s Life Sciences segment.
Aldevron manufactures high-quality plasmid DNA, mRNA, and proteins, serving biotechnology and pharmaceutical customers across research, clinical and commercial applications. Aldevron’s custom manufacturing capabilities enable scientists and biotech companies to develop and supply new breakthrough genetic medicine, and Aldevron has played an important role in combating COVID-19 by supplying plasmid DNA used to manufacture mRNA vaccines.
In May, Danaher reached an agreement to supply plasmid DNA to Moderna to serve as the genetic template for producing the mRNA Covid-19 vaccine as well as other investigational programs.
Aldevron’s products are increasingly popular and that could explain why Danaher was willing to pay that much for the company.
Aldevron, which was founded in 1998 by Michael Chambers and John Ballantyne, is headquartered in Fargo, North Dakota and employs approximately 600 people.
Chambers, who is also Aldevron’s Executive Chairman, said: “Joining Danaher will help us expand our global reach and harness the power of the Danaher Business System to continue supporting our customers with best-in-class products and services. I’m incredibly excited for Aldevron to take this pivotal next step with Danaher and look forward to the tremendous impact we can make together in the expanding area of genomic medicine.”
EQT Private Equity acquired a majority interest in Aldevron in 2019, where it invested together with TA Associates, founders and management.
A statement explained that together with the founders and management team, EQT supported Aldevron in its mission to develop and manufacture high quality biologics that help make meaningful changes in people’s lives worldwide.
Under EQT ownership, Aldevron experienced strong organic growth, expanded its management team and made significant investments to position the business for continued expansion. Aldevron recently completed the construction and validation of a new, state-of-the-art 189,000 sq ft facility on its 14-acre Breakthrough Campus in Fargo, adding significant GMP manufacturing capacity.
Kevin Ballinger, CEO of Aldevron, said: “Genetic medicine is the future and our field is expanding rapidly. EQT has been a great partner to us and played an important role in supporting our company as we scale. Danaher is an excellent strategic fit and new home for Aldevron, and we look forward to working with them.”
Eric Liu, Partner and Global Co-Head of Healthcare at EQT, described Aldevron as integral to the development and supply of new types of therapies that address previously incurable medical conditions.
The deal awaits regulatory approval.
With the deal with Moderna, Aldevron supplies plasmid DNA to serve as the genetic template for generating the COVID-19 mRNA vaccine and other investigational programs in Moderna’s pipeline.
When the deal was announced, Juan Andres, Chief Technical Operations and Quality Officer of Moderna, said: “Aldevron has been a long-standing partner of Moderna. We appreciate their collaboration and their expertise in the biologics space. We look forward to our ongoing work with this expanded partnership.”