Cryoport to Acquire CRYOPDP for €49 Million to Expand Global Supply Chain
Source: Streetwise Reports
August 24, 2020 (Investorideas.com Newswire) Shares of Cryoport Inc. reached a new 52-week high after the company reported it signed an agreement to acquire French firm CRYOPDP in an all cash transaction valued at €49 million.
Cryoport Inc. (CYRX:NASDAQ) today announced the "expansion of its global supply chain network and services by signing an agreement to acquire CRYOPDP, a leading global provider of innovative temperature-controlled logistics solutions to the clinical research, pharmaceutical and cell and gene therapy markets."
The firm stated that, according to the terms of the agreement, Cryoport will acquire CRYOPDP for approximately €49 million in an all cash transaction, and the acquisition is subject to customary closing conditions and is expected to close within 60 days. Cryoport noted that in 2019 CRYOPDP generated over €42 million in revenue and that the transaction is expected to be immediately accretive to Cryoport's earnings upon closing.
The company indicated that CRYOPDP is headquartered in Paris and has more than 25 years experience serving the life sciences and healthcare industries. The firm explained that CRYOPDP provides customized and turnkey high-value transport solutions and handles greater than 300,000 time critical shipments each year across the globe. The firm advised that CRYOPDP's services include a large part of the healthcare temperature-controlled supply chain, including packaging, pick-pack kit preparation, premium services and specialty courier support.
The company's CEO Jerrell Shelton commented, "Our acquisition of CRYOPDP is an important milestone in carrying out Cryoport's strategy to further entrench and strengthen our global footprint and support capabilities for the entire life sciences industry and especially for the fastest growing segment of high value, lifesaving cell and gene therapies...CRYOPDP is especially strong in EMEA and APAC, where it enjoys a strong reputation as a valued specialist logistics provider to CROs (clinical research organizations), the pharmaceutical industry, and the life sciences clinical research community."
"The addition of CRYOPDP will enable us to further extend our capabilities into the full range of temperature-controlled supply chain solutions for the life sciences, as well as immediately expand our global infrastructure. The number of cellular and gene therapy trials is growing and with an increasing number of commercial therapies coming to market, this acquisition proactively strengthens our ability to meet the growing global demands of our life sciences clients, in research, clinical and commercial settings," Shelton added.
CRYOPDP is owned by Hivest Capital Partners, a French private equity firm based in Paris.
Cryoport is based in Nashville, Tenn., and offers logistics services for the life sciences industry by providing a platform of temperature-controlled supply chain solutions. The company states it serves the biopharmaceutical, reproductive medicine and animal health markets and has developed several proprietary system platforms enabling it to deliver vaccines, protein producing materials and IVF materials in more than 100 countries.
Cryoport began the day with a market cap of around $1.3 billion with approximately 38.78 million shares outstanding and a short interest of about 22%. CYRX shares opened higher today at $35.25 (+$1.11, +3.25%) over yesterday's $34.14 closing price and then reached a new 52-week high price this morning of $40.52. The stock has traded today between $35.24 and $40.52 per share and is currently trading at $38.85 (+$4.71, +13.80%).
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