Publicly traded Baxter International has agreed to sell its biopharma solutions business to Advent International and Warburg Pincus for $4.25 billion in cash.
Baxter’s biopharma solutions business (BPS) provides contract manufacturing services for pharmaceutical and biotechnology companies, and specializes in the aseptic filling of injectable drugs, including vaccines, biologics, and small molecules. BPS also offers development and manufacturing services for sterile liquids and lyophilized (freeze-dried) products. BPS is one of the largest contract manufacturers of sterile products in North America.
BPS is headquartered in Bloomington, Indiana, and this transaction includes BPS’s manufacturing facilities and approximately 1,700 employees in Bloomington, Indiana (a 600,000-square-foot campus), and near Berlin in Halle, Germany.
According to Baxter, BPS is projected to have approximately $600 million in annual revenue in 2023.
Both Advent and Warburg Pincus are active investors in the healthcare sector. Advent has completed over 50 investments in 17 countries worldwide across a range of sub-sectors, including pharmaceuticals, life sciences and medical devices; and Warburg Pincus has invested over $16 billion in more than 180 healthcare companies.
“BPS is a premier asset at the forefront of the biopharma industry, and one we’ve been closely following for a number of years,” said John Maldonado, a managing partner at Advent. “Leveraging our deep sector expertise and significant strategic resources, we believe this partnership can unlock multiple opportunities for growth and help the business realize its full potential by serving blue-chip customers, including Baxter, with high-value, specialized and end-to-end capabilities as a standalone company.”
Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer, and leisure; and technology, media and telecom. The firm has 15 offices in 12 countries and employs over 250 investment professionals across North America, Europe, Latin America, and Asia. Founded in 1984 and headquartered in Boston, Advent has $92 billion in assets under management and has completed more than 405 private equity transactions.
“BPS’s success and exceptional market reputation within the pharmaceutical sector position the company well to continue to grow its mission-critical services across a variety of therapeutic areas including oncology, metabolic disease, and infectious disease, among others,” said TJ Carella, a managing director and head of healthcare at Warburg Pincus. “We are excited to partner with Advent and the impressive team at BPS who have developed differentiated technical capabilities and established an industry-leading reputation for quality and reliability in the supply chain for parenteral drugs.”
Warburg Pincus was founded in 1966 and has raised 21 private equity and 2 real estate funds, which have invested more than $109 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.
Baxter International (NYSE: BAX) produces medical products, pharmaceuticals, and biotechnology products that are used by healthcare providers in hospitals and clinics around the world. The company operates in multiple markets, including renal therapy, hospital products, and biopharmaceuticals. Baxter is headquartered in the Chicago suburb of Deerfield, Illinois.
Perella Weinberg Partners is the financial advisor to Baxter. Moelis & Company and Truist Securities are the financial advisors to Advent and Warburg Pincus.
The sale of BPS is expected to close in the second half of 2023.
© 2023 Private Equity Professional | May 9, 2023
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- Source: https://peprofessional.com/blog/2023/05/09/advent-and-warburg-team-up-for-baxter-carve-out/
