Vaccine maker Bavarian Nordic on Monday said it has agreed in principle to a roughly $3 billion take-private offer from private equity firms Nordic Capital and Permira. The company's board of directors plans to unanimously recommend the deal to Bavarian Nordic shareholders when they formally receive Nordic Capital and Permira's bid in the coming weeks.
Under the deal, the two firms will pay 233 Danish kroner per Bavarian Nordic share, representing a 21% premium to the company's closing price on Wednesday, one day before the vaccine maker confirmed it was in takeover talks. The companies expect to complete their deal in the fourth quarter.
"The offer received from Nordic Capital and Permira is the result of intense negotiations aimed at securing the best possible terms for our shareholders," said Bavarian Nordic CEO Luc Debruyne, in a statement. "Together with Nordic Capital and Permira, the growth strategy of Bavarian Nordic can be accelerated."
Vaccine Portfolio and Recent Launches
Bavarian Nordic has developed vaccines for mpox and smallpox, the former of which thrust the company into the global spotlight a few years ago during the most recent outbreak of the disease. It also has a shot against the chikungunya virus, dubbed Vimkunya, that's approved in the EU, U.K. and the U.S.
The company launched Vimkunya in the U.S. in March and secured a recommendation from the Centers for Disease Control and Prevention in May. It expects to launch the shot in the EU and U.K. this year.
Financial Performance and Growth Drivers
Bavarian Nordic has hit setbacks in the past, having scrapped a vaccine for respiratory syncytial virus in 2023 after negative late-stage trial results. But its revenue is now growing on rising demand for its traveler vaccines and continued support for its government contract business. The U.S. government recently exercised options for additional supply of Bavarian Nordic's smallpox vaccine, which will increase revenue this year and secure business for next.
Deal Structure and Future Operations
Nordic Capital and Permira said they plan to continue operating Bavarian Nordic "in the same manner" as currently, including at the company's main facilities. The firms will need to secure over 90% of the voting rights and share capital of Bavarian Nordic to complete the deal.
