Abcam agrees to $5.7B sale to Danaher amid founder’s push for a board seat

Danaher will buy Abcam, a research tools supplier relied upon by many biopharmas, for an enterprise value of about $5.7 billion, the companies announced Monday morning.

The $24-per-share deal caps a quick strategic alternatives hunt for Abcam. In June, the board of the Cambridge, UK-based company called for a review, which was precipitated by founder Jonathan Milner’s attempt in May to return to the board to fix what he called a “sustained period of operational underperformance.” Milner owns 6.3% of Abcam.

Abcam’s share price $ABCM was down about 4% before the opening bell. Its market cap of $5.37 billion is nearly identical to the proposed transaction value.

Jonathan Milner

Back in May, Abcam had said it “appreciates Dr. Milner’s contributions and input and looks forward to continuing to engage actively with him, and all our shareholders.” Also that month, the company announced a planned reduction in management roles, consolidation in sales and marketing and getting rid of “redundant processes,” with the goal of trimming down operating expenses by more than €15 million.

A month later, Milner wound up withdrawing his extraordinary general meeting requisition and proposed resolutions.

He got antsy again this month, issuing an open letter on Aug. 16 to the board saying that he was “disappointed” Abcam didn’t accept his offer to rejoin the board and help with the review.

“Should you continue to refuse my offer, and continue to underdeliver, I will call the board accountable again and will resume my campaign in the autumn, as disclosed, although I sincerely hope this is not required,” he wrote. “I wish you the best of luck in the review process and continue to offer my help to the board and all of Abcam.”

The 25-year-old Abcam supplies the life sciences industry with antibodies, proteins, assay kits, engineered cell lines and biochemical reagents, among other technologies. It says about 750,000 researchers worldwide use its tech, which will add to the global reach of its new owner, the life sciences and tech conglomerate Danaher.

Danaher beat out more than 20 other potential acquirers in the review process, Abcam said. The companies said Abcam will run as a standalone company within Danaher’s life sciences unit. The boards of both companies unanimously approved the deal, and a closing is anticipated in the middle of next year.

Danaher, based in Washington, DC, plans to use existing cash and commercial paper proceeds to bankroll the deal.

“Abcam’s long track record of innovation, outstanding product quality and breadth of antibody portfolio positions them as a key partner for the scientific community,” Danaher president and CEO Rainer Blair said in a statement.

Danaher has been active on the M&A front since its beginning. The company has said it’s acquired “hundreds of businesses since 1984,” with more than 50% of its revenue derived from acquisitions in recent years.

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