Global life sciences platform, Gamma Biosciences, which was created by KKR to serve the advanced therapy market with bioprocessing solutions, has agreed to a deal with Biotage AB, a Swedish life sciences company. Under the agreement, Biotage will acquire Gamma's operating company, Astrea Bioseparations, in exchange for newly issued shares in Biotage. This will result in the creation of a leading global chromatography company with a strong mix of products and services across various end-markets worldwide.
Astrea provides chromatography resins, adsorbents, and columns, as well as nanofiber-based purification technologies for biomanufacturing. It helps drug developers and manufacturers bring high-purity biopharmaceuticals and advanced therapeutics to the global market. This deal will extend Biotage's chromatography franchise into the high-growth and larger bioprocessing segment, increasing its exposure to biologics and advanced therapeutic customers.
Furthermore, the acquisition will strengthen Biotage's financial profile by capitalizing on Astrea's high organic growth rate, attractive gross margins, and significant exposure to recurring consumables-based revenues. The deal will also bring a rich pipeline of new product launches across chromatography resins, nanofiber-based membranes, and columns.
As part of the transaction, Gamma will make a capital injection of approximately $25 million in Astrea. Following the completion of the transaction, KKR-controlled Gamma is expected to become the largest shareholder in Biotage, owning approximately 17.0% of the outstanding shares. The enterprise value for Astrea consists of around $190 million, which will be paid at closing in shares of Biotage stock, subject to any closing adjustments, and up to $45 million in milestone-based cash payments after closing.
The deal is conditional upon Biotage shareholder approval and subject to customary closing conditions.
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