Oxford Biomedica To Acquire ABL Europe From Institut Merieux
Oxford Biomedica Plc. (OXB.L) announced on Monday that it has inked a sale and purchase deal with TSGH SAS, a unit of Institut Merieux SA, to buy ABL Europe SAS in exchange for Oxford Biomedica shares.
The transaction, expected to be closed in the first quarter of 2024, will be immediately revenue accretive to Oxford Biomedica.
The acquisition will boost Oxford Biomedica’s capacity in processing and analytical development and early-stage manufacturing. The combination will also address increased client demand for process development.
ABL Europe is a contract development and manufacturing organization or CDMO with expertise in the development and manufacturing of solutions for biotechs and biopharma including viruses for gene therapy, oncolytic viruses, and vaccine candidates.
ABL Europe currently works on over 10 cell and gene therapy programs spanning disease areas including over six different vector types.
ABL Europe is projected to post revenue of around 15 million euros for the full year to December 31, 2023.
For the 12 months up to December 31, 2022, ABL Europe had earnings before interest tax, and depreciation or EBITDA loss of around 1.7 million euros.
Institut Merieux has acquired a 3.3 percent stake in Oxford Biomedica, through purchases in the open market, which it intends to increase to around 10 percent in aggregate by the end of the third quarter of 2024.
As announced earlier, Oxford Biomedica is acquiring ABL Europe for a consideration of 15 million euros, including the value of 10 million euros of pre-completion cash funding from Institut Merieux in ABL Europe for, amongst other things, development capex.
Institut Merieux has committed to provide 20 million euros of additional funding to the company, to cover capital expenditure and potential operational losses to the acquisition of ABL Europe, utilizing an equity subscription.
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