EQT has agreed to acquire a majority stake in Fargo, North Dakota-based Aldevron, a producer of nucleic acids, proteins, and antibodies. No financial terms were disclosed. TA Associates will retain a minority stake in Aldevron. Morgan Stanley served as financial adviser to EQT on the deal while Goldman Sachs did likewise for TA Associates.
NEW YORK, July 31, 2019 /PRNewswire/ — The EQT VIII Fund (“EQT” or “EQT VIII”) today announced that it has entered into an agreement to acquire a majority interest in Aldevron (the “Company”). Following the close of the transaction, EQT VIII will own a majority interest in the Company. Founders, management and TA Associates will retain a minority stake.
Founded in 1998 by Michael Chambers and John Ballantyne, Aldevron is the leading global supplier of GMP, GMP-SourceTM and Research Grade plasmid DNA used in commercial, clinical and research stage gene therapies, as well as proteins, antibodies and mRNA. The Company’s custom development and manufacturing capabilities enable scientists worldwide to develop groundbreaking new therapies with a focus on quality, speed and innovation. Aldevron is based in Fargo, North Dakota and has additional operations in Madison, Wisconsin and Freiburg, Germany. The Company employs approximately 400 people worldwide and serves more than 4,800 clients, including leading academic and research institutions, pharmaceutical and biotechnology companies.
EQT will help advance Aldevron’s R&D and innovation efforts as the Company continues to support the rapidly growing field of genetic medicine by providing a critical input for the development of new life-saving therapies. EQT will also support Aldevron with investments in additional production capacity at its Fargo campus, furthering the Company’s position as a key employer in North Dakota.
Michael Chambers, Co-Founder and CEO of Aldevron, commented: “We’re very proud of what Aldevron has accomplished over the past two decades. We remain committed to our clients and their work, and to our mission – to develop and manufacture biologics at the highest quality that help make meaningful changes, worldwide. EQT shares our strong values and commitment to excellence and we believe their significant healthcare experience, global presence and industrial network make them an ideal partner as we continue our growth journey.”
Eric Liu, Partner at EQT Partners and Investment Advisor to EQT VIII, said: “EQT has followed the life science tools and gene therapy market closely for many years, and we believe Aldevron is uniquely positioned as a critical supplier to this rapidly growing market. The Company helps its clients deliver leading edge therapies that address previously uncurable medical conditions and improve patient lives around the world. Aldevron has unparalleled scientific-know how, scale and process expertise, enabling the Company to deliver the highest quality products. We are excited to partner with Michael and his team to further develop Aldevron and invest in the Fargo community in these exciting times.”
Marc Wolff, CFO of Aldevron, said: “EQT is among the top 10 private equity investors in the world. They bring considerable financial strength and international reach to Aldevron. With EQT’s strategic approach, TA Associates’ experience with us, and their collective ability to provide informed, industry guidance, we will be in an excellent position for continued growth, which will further bolster our commitment to our clients, their work and the patients they serve.”
Ethan Liebermann, Director at TA Associates, said: “We have been pleased with our partnership with Michael and the Aldevron team and are looking forward to continuing this journey with our new partners at EQT.”
Mark Carter, Managing Director at TA Associates, added: “EQT is one of the most respected firms in private equity and we are eager to embark on a new chapter together at Aldevron.”
Morten Hummelmose, Chairman of EQT Partners Inc. and Head of EQT Equity US, said: “This transaction represents another important milestone for EQT in the US. EQT VIII has now invested in US businesses within each of our three core sectors, Healthcare, TMT and Business Services, and we are excited to continue EQT’s successful track record of developing companies across these industries.”
The transaction is expected to close by year-end, subject to regulatory conditions and approvals.
Morgan Stanley & Co. LLC acted as financial advisor to EQT, and Simpson Thacher & Bartlett LLP provided legal counsel. Goldman Sachs acted as financial advisor to TA Associates, and Kirkland & Ellis LLP provided legal counsel.
EQT is a leading investment firm with more than EUR 61 billion in raised capital across 29 funds and around EUR 40 billion in assets under management. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 21 billion and approximately 127,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership. More info: www.eqtpartners.com
About TA Associates
TA Associates is one of the most experienced global growth private equity firms. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high quality growth companies. TA has raised $32.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $2 billion per year. The firm’s more than 85 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA Associates can be found at www.ta.com.
Aldevron serves the biotechnology industry with custom production of nucleic acids, proteins, and antibodies. Thousands of clients use Aldevron-produced plasmids, RNA and gene editing enzymes for projects ranging from discovery research to clinical trials to commercial applications. These products are critical raw materials and key components in commercially available drugs and medical devices. Aldevron is known for inventing the GMP-SourceTM quality system, and for specializing in GMP manufacturing, operating the world’s largest facility at its company headquarters in Fargo, North Dakota. Aldevron has additional facilities in Madison, Wisconsin, and Freiburg, Germany. More info: www.aldevron.com