Mergermarket: Cryoport Continues Opportunistic Acquisition Drive to Build Upon Current Markets

December 01, 2021

By Mintoi Chessa-Florea in London – editor of Mergermarket, an Acuris company
Originally published by Mergermarket and re-published with author permission

 

Cryoport [NASDAQ: CYRX], a US-based provider of temperature-controlled supply chain solutions for the life sciences industry, continues to be on the look-out for opportunistic acquisitions, President and CEO Jerrell Shelton told this news service.

The Tennessee-based company, which provides specialised solutions to the biopharmaceutical, animal health and IVF shipping industries, is interested in companies that can be “tactical or strategic” acquisitions for any of the markets it operates in, he said.

Inorganic growth is an important part of Cryoport’s strategy as it provides a boost in growth with the customer base acquisition that comes with these assets, he explained.

The company is interested in targets operating in specialist areas related to packaging, bio-storage, specialist software platforms, or specialised logistic companies as was the case with its April acquisition of Critical Transport Solutions Australia, he said. The business, which is specialised in time- and temperature-critical logistics for the medical and pharmaceutical industries, was acquired for approximately USD 5m.

Unique capabilities are of interest, Shelton said, such as the secure supply chain for the transport of biologics, tissues and cell and gene therapies. This was the case with the acquisition of France-based CRYOPDP, a provider of temperature-controlled logistics for the clinical research, pharmaceutical and cell and gene therapy markets, for EUR 49m last year.

The company has a robust acquisition pipeline, and it is looking to expand its footprint in the life sciences markets it is serving, while also adding “auxiliary and tangent services,” he said. These could be add-on acquisitions of highly engineered products in packaging for example, or AI-powered platforms that fit with Cryoport’s supply chain expertise in the life sciences industry, he said.

The company has no set number of acquisitions that it wants to complete as these depend on buyer-seller negotiations and are always opportunistic, Shelton said.

There are many smaller companies that would want to be acquired by Cryoport as tactical, fold-in acquisitions, as these companies see the value in being part of a larger holding company, he said.

Cryoport has no set criteria for the size or geographical presence of a target, Shelton said. The company is strong in the Americas and assesses targets globally, he added.

He declined to specify a sweet-spot for acquisition deal-size as these are assessed on a case-by-case basis. Cryoport earlier this month priced its upsized USD 350m convertible senior notes offering.

According to its latest financial statement, the company’s total Biopharma/Pharma revenue increased by USD 36.2m, or 371%, to USD 46m for 3Q21 compared to USD 9.8m for the same period last year, driven by strong revenue contributions from all business units.

For the third quarter of 2021, Biopharma/Pharma revenue also grew organically by USD 4m, or 41%, to USD 13.8m compared to the third quarter in the prior year.

The company has a current market cap of around USD 3.16bn.


[Editor's Note: The tenth paragraph has been updated to provide the company's latest fundraise announcement.]

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Cryoport® is a trademark of Cryoport, Inc. and used with permission by Cryoport Systems, LLC