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East Rutherford-based Cambrex Corp., a small molecule company providing drug substance, drug product and analytical services across the entire drug lifecycle, announced Wednesday it signed a definitive agreement to be acquired by an affiliate of global investment firm Permira funds, in a transaction valued at approximately $2.4 billion, including Cambrex’s net debt.

Under the terms of the merger agreement, Cambrex shareholders will receive $60.00 in cash for each share of Cambrex common stock, representing a 47.1-percent premium to the Aug. 6 closing stock price and a 37.3 percent premium to the 60-day volume-weighted average closing price leading up to this announcement.

In a press release, Cambrex reported it has grown to become the premier contract development and manufacturing organization in the small molecule space over the last several years.

The recent acquisitions of Halo Pharma in 2018 and Avista Pharma Solutions in 2019 added drug product manufacturing and a full range of early-stage and analytical testing services to the company’s leading position in drug substance manufacturing, allowing Cambrex to broaden customer relationships over the full product lifecycle, from pre-clinical through commercial.

“We are excited to announce this transaction with Permira, a global private equity firm that has made significant investments in the pharma services space. This agreement is a strong endorsement of our strategy and represents significant value for our shareholders,” said Cambrex President and Chief Executive Officer Steve Klosk. “Cambrex will continue to invest aggressively in our commitment to our global customer base, where we are constantly looking at ways to provide the broadest possible range of world-class services.”

Completion of the transaction is subject to customary closing conditions, including receipt of approval by Cambrex’s shareholders and customary regulatory approvals. Closing is expected to occur during the fourth quarter of 2019.

The transaction will be financed through a combination of debt and equity financing.

Under the terms of the agreement, Cambrex may actively solicit acquisition proposals from third parties during a 45-day “go-shop” period starting from the date of the agreement (which period may be extended under certain circumstances for an additional 15 days), and subject to customary requirements included in the agreement, enter into or recommend a transaction with a person or group that makes a superior proposal. There can be no assurance that this process will result in a superior proposal.

Cambrex does not intend to disclose developments during this process unless and until the board makes a decision with respect to any superior proposal it may receive.