Repligen, Spectrum Inc. To Merge in $359 Million Deal in Bioprocessing
Repligen, a life-sciences company focused on bioprocessing technology, has agreed to merge with privately held Spectrum, Inc., a company providing filtration products, for $359 million, comprised of $120 million in cash and 6.154 million shares of Repligen stock.
Spectrum’s products are used for filtration, isolation, purification, and concentration of monoclonal antibodies, vaccines, recombinant proteins, diagnostic products, and cell therapies. Its filtration products include hollow fiber cartridges, bench-top to commercial-scale filtration and perfusion systems, and single-use bioprocessing products. Spectrum recorded revenues of $40.2 million in 2016, with greater than 90% coming from its filtration product portfolio.
The Spectrum portfolio, which consists of hollow fiber tangential flow filtration products and associated systems and consumables, is expected to complement and strengthen Repligen’s position in the filtration market, where its existing filtration products are in upstream and downstream monoclonal antibody production. Repligen currently purchases hollow fiber filters for use in its XCell ATF systems, used in upstream bioprocessing, through original equipment manufacturers’ agreements, with Spectrum as its main supplier. The proposed acquisition expands Repligen’s filtration product offering.
The transaction is expected to be completed during the third quarter of 2017, but is subject to the satisfaction of customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.