AMAG Pharmaceuticals Inc. has agreed to buy Cord Blood Registry for $700 million. The deal is expected to close in third quarter. San Bruno, California-based Cord Blood, a newborn stem cell company, is a portfolio company of GTCR.
CHICAGO–(BUSINESS WIRE)–GTCR, a leading private equity firm, announced that its portfolio company Cord Blood Registry (“CBR” or the “Company”) has signed a definitive agreement to be acquired by AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG), a specialty pharmaceutical company that focuses on maternal health and hematology, for $700 million. The transaction is expected to close in the third quarter upon the receipt of regulatory approvals and satisfaction of other customary conditions.
Founded in 1992, CBR is the world’s largest newborn stem cell company. CBR is dedicated to supporting the clinical application of cord blood and cord tissue stem cells by partnering with institutions to establish FDA-regulated clinical trials for conditions that have no cure today. The Company provides services which enable expectant families to preserve their child’s umbilical cord blood stem cells and cord tissue samples for potential future medical use by the child or a related family member. CBR has helped more than 300 families use their cord blood stem cells for established and experimental medical treatments, more than any other family cord blood bank. The Company’s goal is to expand the potential scope of newborn stem cell therapies that may be available to patients and their families.
In September 2012, GTCR partnered with life sciences executive Geoffrey Crouse to acquire and transform CBR. As part of the transaction, Mr. Crouse joined the Company as CEO. Together, GTCR and Mr. Crouse recruited a senior management team, transformed the digital marketing strategy, and built upon CBR’s strong commercial leadership position. By further refining CBR’s commercial infrastructure, GTCR and Mr. Crouse have enabled more effective communication with consumers and OB/GYNs, creating an attractive platform to offer additional products and services in the consumer health and maternal health markets.
“GTCR is proud to have supported CBR’s growth and development over the last few years,” said GTCR Managing Director Dean Mihas. “Geoffrey and the entire CBR team have built a tremendous platform that enjoys a strong, market-leading position, an exceptional commercial infrastructure, and attractive growth prospects. We believe that the Company is well-positioned to continue its success as part of AMAG.”
“On behalf of all the employees at CBR, I’d like to thank GTCR for its commitment to our organization over the past few years. Under their ownership, we have built an excellent team and thank GTCR for their constant support and guidance. They have been outstanding partners as we have further refined our commercial strategy and supported the clinical applications of cord blood and cord tissue stem cells. We look forward to working with AMAG to continue to support the advancement of medical applications for more families,” said Geoffrey Crouse, CEO of CBR.
“Like many of our successful investments, our partnership with Geoffrey Crouse began with a proactive effort to identify and invest in attractive businesses within an industry we know well,” added Sean Cunningham, Managing Director at GTCR. “With CBR, we saw an interesting opportunity to build out the commercial footprint to drive faster growth, solidify the Company’s market-leading position and create strategic value.”
Kirkland & Ellis LLP provided legal counsel to CBR and GTCR.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, Technology, Media & Telecommunications and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies. For more information, please visit www.gtcr.com.
Cord Blood Registry is the world’s largest newborn stem cell company. Founded in 1992, CBR is entrusted by parents with storing samples from more than 500,000 children. CBR is dedicated to advancing the clinical application of cord blood and cord tissue stem cells by partnering with institutions to establish FDA-regulated clinical trials for conditions that have no cure today.
As a high-growth specialty pharmaceutical company, AMAG Pharmaceuticals (NASDAQ: AMAG) uses our business and clinical expertise to bring medical therapies and other innovations to market that provide clear benefits and improve people’s lives. Based in Waltham, Mass., AMAG has a diverse portfolio of products in the areas of maternal health, anemia management and cancer supportive care. We work to expand the impact of these and future products for patients by delivering on our aggressive growth strategy, which includes organic growth as well as the pursuit of products and companies that align with AMAG’s existing therapeutic areas or those that could benefit from our proven core competencies. For additional company information, please visit www.amagpharma.com.