Catalent Inc., a Somerset-based provider of technologies and solutions for the health industry, said Monday it will acquire Paragon Bioservices Inc. for $1.2 billion to help expand its footprint in gene therapy.
“Paragon’s unparalleled expertise in the rapidly growing market of gene therapy manufacturing will be a transformative addition to our business that we believe will accelerate our long-term growth. Paragon brings to Catalent a complementary capability that will fundamentally enhance our biologics business and our end-to-end integrated biopharmaceutical solutions for customers,” John Chiminski, Catalent’s chair and CEO, said. “We look forward to working with Paragon’s incredibly talented team and world-class customers to complete the significant ongoing investments into expanded state-of-the-art facilities and deliver revolutionary, lifesaving treatments to patients.”
Paragon, based in Baltimore, is a viral vector development and manufacturing partner for gene therapies.
Catalent said it will fund the deal with proceeds from a $650 million incremental term loan and the issuance of $650 million of a new series of convertible preferred stock.
“Our existing investors, NewSpring Health Capital and Camden Partners, were extremely supportive in getting us to where we are today. We are excited to join forces with the leading drug development and manufacturing partner in our industry. This transaction will enable us to achieve our next stage of development and expand our capabilities and platform for the benefit of our customers and their patients,” Pete Buzy, Paragon CEO and president, said.
Once the deal has closed, Paragon will remain under the leadership of Pete Buzy. Its management team and about 380 employees will also joint Catalent. Peter Zippelius, a partner at LGP, will also join Catalent’s board of directors.
The deal is expected to close by the end of June.