Emergent BioSolutions to acquire Cangene for $222 million

Taking a significant step to solidify its leadership position in the growing biodefense market, US vaccine maker Emergent BioSolutions (NYSE: EBS) has entered into a definitive agreement to acquire Canadian biotech firm Cangene (TSX: CNJ).

Under the proposed deal, Emergent will acquire all of the outstanding common shares of Cangene in an all-cash transaction valued at $3.24 per share (a 27% premium to the firm’s closing price December 10) on a fully diluted basis for an aggregate purchase price of $222 million. The transaction, which is expected to complete in first-quarter 2014 – subject to US and Canadian regulators’ approval, is expected to be accretive in 2014, exclusive of transaction-related costs.

The boards of directors of both companies have approved the transaction. Agreements are in place with shareholders who collectively control, directly or indirectly, around 61% of the outstanding common shares of Cangene, under which they have agreed to irrevocably support and vote in favor of the transaction.