Catalent, Inc. (NYSE: CTLT) shares exhibited a morning uptrend in today’s trading session. As of the last check during current session, the value of Catalent stock had surged by 9.67%, reaching $59.78. This increase in CTLT stock price can be attributed to a takeover proposal aimed at privatizing the company.
Together, Catalent (CTLT) and Novo Holdings today announced the formalization of a merger agreement. This agreement states that Novo Holdings will purchase Catalent in an all-cash deal; Catalent is believed to have an enterprise value of $16.5 billion.
Novo Holdings is going to buy all of Catalent’s outstanding shares for $63.50 in cash. This amount is a noteworthy 47.5% more than the 60-day volume-weighted average price for the same day. It also exceeds the closing price of Catalent’s shares on February 2, 2024, the day before to the announcement, by 16.5%.
Furthermore, on August 28, 2023, Catalent’s closing stock price was 39.1% higher than the acquisition price. This was the day before the company declared that a Strategic and Operational Review Committee had been formed by its Board of Directors. The committee’s mandate was to evaluate Catalent’s capital allocation, operations, strategy, and business practices to optimize value for investors.
Novo Holdings plans to divest three of Catalent’s more than fifty global facilities, along with any associated assets obtained during the merger, to Novo Nordisk (CPH: NOVO). Novo Holdings is the primary owner of Novo Nordisk. These facilities are situated in Anagni, Italy; Bloomington, Indiana, USA; and Brussels, Belgium.
To promote innovation in the healthcare industry and enhance patient outcomes, Catalent has created an extensive array of end-to-end services in recent years. With the support of Novo Holdings’ vast resources, Catalent hopes to boost key products and accelerate investment in its company while maintaining its dedication to giving pharmaceutical and biotech clients excellent research and production solutions.
This transaction ensures significant, assured, and premium value for Catalent stockholders. The merger is anticipated to conclude by the conclusion of the calendar year 2024, subject to customary closing conditions, which include approval by Catalent stockholders and obtaining necessary regulatory approvals. The transaction is not contingent on any financing factors.
