Charles River To Acquire Vigene Biosciences For $292.5 Mln In Cash – Quick Facts
Charles River Laboratories International, Inc. (CRL) announced Monday that it has signed a definitive agreement to acquire Vigene Biosciences, Inc., a premier, U.S.-based gene therapy contract development and manufacturing organization (CDMO) providing viral vector-based gene delivery solutions.
The addition of Vigene Biosciences’ extensive gene therapy expertise will enable Charles River to expand its comprehensive cell and gene therapy portfolio to span each of the major CDMO platforms – cell therapy, viral vector, and plasmid DNA production.
The purchase price is expected to be $292.5 million in cash, subject to customary closing adjustments. In addition to the initial purchase price, the transaction includes contingent additional payments of up to $57.5 million based on future performance.
The transaction is expected to close in the beginning of the third quarter of 2021, subject to regulatory requirements and customary closing conditions.
The acquisition and associated fees are expected to be financed through Charles River’s existing credit facility and cash. Vigene is expected to be reported as part of Charles River’s Manufacturing segment.
Based on the anticipated completion of the acquisition in the beginning of the third quarter, Vigene is expected to add approximately 50 basis points to Charles River’s reported revenue growth rate in 2021.
The transaction is expected to be neutral to adjusted earnings per share in the first full year after the acquisition closes, and accretive thereafter.
Source: Read Full Article