Avid Bioservices(US:CDMO) Globenewswire·2025-01-08 22:15Core Points - Avid Bioservices is urging stockholders to vote in favor of a pending transaction with GHO Capital Partners and Ampersand Capital Partners, which is expected to provide significant cash value to stockholders [1][4] - The transaction is set to be voted on during a Special Meeting scheduled for January 30, 2025, with eligible stockholders having been recorded as of December 11, 2024 [2][4] Transaction Details - The proposed transaction offers a 63.8% premium to Avid's closing share price on June 4, 2024, prior to the initial proposal from GHO and Ampersand [4] - The transaction's implied multiples surpass those of comparable publicly traded companies, indicating a strong valuation [4] - Avid's intrinsic value is assessed to be 24.9% higher than the midpoint of its discounted cash flow analysis based on a five-year plan [4] Board's Process - The Avid Board of Directors conducted a thorough process, initially rejecting two proposals from GHO and Ampersand before engaging in further discussions [4] - The Board involved Moelis to manage a competitive process that included outreach to 24 strategic and financial parties, resulting in two preliminary bids [4] Industry Context - The biologics manufacturing industry faces various challenges and opportunities that have been factored into market pricing prior to the sale announcement [4] - Avid has made strategic investments but requires additional funding to fully realize its growth potential [4] - Financial analyses indicate that Avid's growth prospects are below previous guidance and analyst consensus [4] Company Overview - Avid Bioservices specializes in biologics contract development and manufacturing, offering a range of services from process development to commercial manufacturing [6] - The company has over 30 years of experience in producing biologics, supporting both clinical and commercial needs [6]