KKR’s US$ 1.2 billion bid for Biotage gains momentum

USA – U.S.-based private equity firm KKR has made a public cash offer to acquire Swedish biotechnology company Biotage AB for 11.6 billion Swedish crowns, equivalent to US$ 1.22 billion.

The offer, presented via KKR’s newly formed entity RWK BidCo, proposes a purchase price of 145 crowns per share, representing a 60.1% premium over Biotage’s closing share price on April 17. ​

Biotage, headquartered in Uppsala, Sweden, specializes in providing solutions in genetic analysis and medicinal chemistry.

The company’s products are widely used in drug discovery and development, including synthesizers, purification systems, and evaporators. Biotage also offers products for clinical and bioanalytical testing and toxicology. ​

The company’s board of directors has unanimously recommended that shareholders accept KKR’s offer.

KKR already holds a 17% stake in Biotage through its life sciences investment platform, Gamma Biosciences, making it the company’s largest shareholder.

This acquisition proposal comes amid a period of increased activity in the healthcare sector, with private equity firms seeking opportunities in life sciences and biotechnology.

Biotage has faced financial challenges in recent times, reporting a nearly 20% decrease in sales compared to the same period in the previous year.

Despite these challenges, the company has experienced stronger demand in the drug discovery segment and peptide system manufacturing.

The board believes that KKR’s extensive network and resources could accelerate Biotage’s growth and scale-up efforts in a private setting. ​

The acquisition aligns with KKR’s strategy to invest in companies with strong growth potential in the healthcare and life sciences sectors.

If successful, the deal would enable Biotage to leverage KKR’s expertise and capital to enhance its product offerings and expand its global footprint. ​

The proposed acquisition is subject to customary closing conditions, including regulatory approvals. Biotage’s shareholders will have the opportunity to consider the offer and its potential benefits for the company’s future growth and development. ​