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Biotech and Pharma

Permira Funds to buy drug contract manufacturer Cambrex for $2.02 billion

Key Points
  • Permira Funds will buy Cambrex for about $2 billion, the drug contract development and manufacturing company said.
  • The all-cash offer of $60 per Cambrex share represents a 47% premium to the stock's Tuesday close. The company's shares were trading at $59.20 before the bell on Wednesday.

Private-equity firm Permira Funds will buy Cambrex for about $2 billion, the drug contract development and manufacturing company said on Wednesday.

The all-cash offer of $60 per Cambrex share represents a 47% premium to the stock's Tuesday close. The company's shares were trading at $59.20 before the bell on Wednesday.

Cambrex, which provides drug developers with manufacturing and testing services, said that the deal is expected to close during the fourth quarter.

Including debt, the deal is valued at about $2.4 billion.

The transaction will be financed through a combination of debt and equity financing, Cambrex said.

Morgan Stanley & Co LLC is the financial adviser, while Kirkland & Ellis LLP is the legal adviser to Cambrex.

RBC Capital Markets is the financial adviser to Permira funds, while Skadden, Arps, Slate, Meagher & Flom LLP is the legal adviser.

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Health and Science

CVS posts big earnings beat, raises full-year forecast

Key Points
  • CVS Health beats second-quarter earnings expectations, raises full-year forecast. 
  • CVS announced earlier this week it would expand its membership program CarePass nationwide.
  • Investors want to see whether CVS can integrate Aetna.