
Advent International and Warburg Pincus Finalize Acquisition of Baxter’s BioPharma Solutions Business
Two leading global private equity investors, Advent International and Warburg Pincus, have successfully completed the acquisition of Baxter International Inc.’s BioPharma Solutions (BPS) business. This strategic move will see the newly established entity operate as Simtra BioPharma Solutions, a standalone contract development and manufacturing organization (CDMO). Under the terms of the deal, Baxter received $4.25 billion in cash, subject to specified closing adjustments. The business unit had $644 million in revenue in 2022 and consequently the deal is valued at 6.6x trailing sales.
In partnership with Advent and Warburg Pincus, Simtra aims to become a fully independent, end-to-end CDMO offering a comprehensive range of services to its clients, spanning from clinical development to commercial fill/finish. The company will continue to operate its manufacturing facilities in Bloomington, Indiana, and Halle, Germany, while establishing its corporate headquarters in New Jersey.
Franco Negron, appointed as CEO of Simtra in August 2023, expressed excitement about leading the company during this transformative period. He emphasized the commitment to delivering exceptional quality, service, and technical capabilities to their global customer base and underscored his enthusiasm for partnering with the dedicated Simtra team.
Baxter has been actively updating its portfolio and earlier this year the company also announced the company was preparing to spin off its Renal Care and Acute Therapies global businesses (Kidney Care) into a separate publicly traded company. Baxter said these moves are expected to enable a more focused management approach, allowing the company to pursue its investment priorities, drive growth, and enhance innovation in new areas.