Board unanimously approves cash offer.
Albany Molecular Research, Inc. (AMRI) announced Tuesday it has signed a definitive agreement to be acquired by affiliates of The Carlyle Group and GTCR LLC. According to a Reuters report, AMRI agreed to be taken private for approximately $922 million in cash or $21.75 per share.
Representing a 42% premium in relation to the stock’s 60-day weighted average stock price (ending just prior to public speculation on April 5th), the deal was unanimously approved by AMRI’s board of directors who will recommend the CRDMO’s shareholders vote to accept the offer.
AMRI president William Marth said the proposed acquisition is a strong endorsement of the company’s growth strategy. “Given their deep healthcare industry expertise and financial resources,” explained Marth, “Carlyle and GTCR are highly attractive partners for us and offer a compelling opportunity to accelerate our growth and enhance delivery of world-class solutions to our customers."
Subject to “customary closing conditions” and an affirmative shareholder vote, the transaction, said the joint announcement, will be financed through a combination of debt and equity financing. According to Carlyle Group and GTCR, equity capital for the deal will come from its buyout fund representing $3.85 billion in capital commitments.
AMRI’s prospective buyers lauded its experience and customer service focus as long-term drivers of value: “We see great potential and talent within the organization,” said Carlyle Managing Director Stephen Wise, “and are eager to partner with AMRI to strengthen and build upon its existing set of products and services." GTCR managing director Dean Mihas remarked he felt the company was uniquely positioned to capitalize on demand for contract services and that they “look forward to partnering with the AMRI team to achieve its strategic objectives and drive value for all of AMRI's stakeholders."