Danaher to acquire Abcam in $5.7bn transaction

November 2023 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

November 2023 Issue

As part of a drive to expand its portfolio of products and services, global science and technology innovator Danaher Corporation is to acquire protein consumables manufacturer Abcam plc.

Under the terms of the definitive agreement, Danaher will acquire all of the outstanding shares of Abcam for $24 per share in cash, for a total enterprise value of approximately $5.7bn including assumed indebtedness and net of acquired cash.

The sale follows a strategic review initiated in June 2023 by Abcam, which itself followed a bid by Jonathan Milner, the company’s founder, to regain control of the company – a bid which ended in a stalemate in July, leaving the company open to acquisition in the global marketplace.

Danaher expects to fund the acquisition of Abcam using cash on hand and proceeds from the issuance of commercial paper.

Founded in 1998 and headquartered in Cambridge in the UK, Abcam offers the scientific community highly validated antibodies, reagents, biomarkers and assays to address targets in biological pathways that are critical for advancing drug discovery, life sciences research and diagnostics. The company’s technologies are used by approximately 750,000 researchers.

Abcam, which has been under pressure from activist shareholders to sell itself, has stated that it had engaged with 20 potential buyers before the deal with Danaher was finalised.

“Our strategy has transformed Abcam to become a scale innovator and important catalyst in the global life science community,” said Alan Hirzel, chief executive of Abcam. “Danaher shares our passion to help life science researchers achieve their mission faster and their operating company model allows us to continue to pursue our strategy, while harnessing the power of the Danaher business system to ensure we remain the partner of choice for our customers.”

Following completion of the deal, Abcam is expected to operate as a standalone operating company and brand within Danaher’s life sciences segment, furthering Danaher’s strategy to help map complex diseases and accelerate the drug discovery process.

A global science and technology innovator committed to helping its customers solve complex challenges and improve quality of life around the world, Danaher has a global network of more than 25 operating companies. It drives meaningful innovation in some of today’s most dynamic industries through its operating companies in four strategic platforms: life sciences, diagnostics, water quality and product identification.

“We could not be more excited to have Abcam join Danaher,” said Rainer M. Blair, president and chief executive of Danaher. “Abcam’s long track record of innovation, outstanding product quality and breadth of antibody portfolio positions them as a key partner for the scientific community.”

Abcam is the latest in a series of deals by Danaher to build its portfolio. Previous transactions saw the Washington DC headquartered Danaher acquire contract development and manufacturing organisation Aldevron for $9.6bn in 2021, as well as General Electric Co’s biopharma solution business for $21.4bn in 2019.

The transaction – which has been unanimously approved and recommended by the boards of directors of both Abcam and Danaher – is anticipated to close mid-2024 and is subject to customary conditions, including receipt of applicable regulatory approvals and Abcam shareholder approval.

Mr Blair concluded: “We look forward to welcoming Abcam’s innovative and talented team to Danaher as we continue to help our customers solve some of the world’s biggest healthcare challenges.”

Fraser Tennant