Novo Holdings to Acquire Catalent in $11.5 Billion Cash Deal

Novo Holdings, the controlling shareholder of Danish pharmaceutical giant Novo Nordisk, has announced its plans to acquire drug manufacturer Catalent for $11.5 billion in cash. The deal will see Novo Holdings purchase New York-listed Catalent for $63.50 per share, offering a premium of 16.5% to Catalent's closing price on Friday. The acquisition, including the assumption of Catalent's debt, is valued at $16.5 billion.

As part of the agreement, Novo Nordisk will also purchase three of Catalent's manufacturing sites for $11 billion. These sites specialize in fill-finish operations and currently collaborate with Novo Nordisk. Located in Italy, Belgium, and the U.S., these facilities employ over 3,000 people.

The acquisition is aimed at enhancing Novo Nordisk's production capacity and expanding its supply network. By acquiring the fill-finish sites, Novo Nordisk aims to increase manufacturing capacity for its diabetes and obesity treatments while ensuring flexibility in its existing supply operations.

However, the company doesn't anticipate an immediate boost in filling capacity due to the deal. The increased capacity is expected by 2026, as Novo Nordisk works towards overcoming periodic supply constraints and drug shortages.

The completion of the acquisition is subject to the merger of Catalent and Novo Holdings, with an expected timeline towards the end of 2024. Upon closing, Catalent will transition from being a publicly traded company and become privately held.

This strategic move by Novo Holdings reflects the company's commitment to expanding its presence in the pharmaceutical industry, solidifying its position as a leader in the market.