M&A · Healthcare · Pharmaceutical Preparations
LG Chem, Ltd. to acquire Aveo Pharmaceuticals, Inc.
Announced Oct 18, 2022 · Closed Jan 19, 2023
Deal value$566MEV $496M
Premium43.0%To unaffected price
EV / Adj. EBITDA—6.3x EV / Revenue
ConsiderationAll cash$15.00 per share
Transaction
- Acquirer
- LG Chem, Ltd.
- Target
- Aveo Pharmaceuticals, Inc.
- Buyer type
- Strategic
- Offer price per share
- $15.00
- Enterprise value
- $496M
- Status
- Closed Jan 19, 2023
Deal protections
- Break fee (target pays)
- $20.4M · 3.6%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- BofA Securities
- To the target
- Moelis
Sector context · Healthcare
- Comparable deals
- 65 in the prior 24 months
- Premium
- 43.0% vs. 48.5% sector median
- EV / Adj. EBITDA
- Sector median 17.4x
- Break fee
- 3.6% vs. 3.4% sector median
Timeline
- AnnouncedOct 18, 2022
- Proxy filedNov 15, 2022
- Definitive proxyNov 25, 2022
- Shareholder voteJan 5, 2023
- ClosedJan 19, 2023
Valuation · fairness opinions
Discounted cash flow$12.47$15.39
Trading comparables$8.59$12.60
Trading comparables$7.57$12.42
Discounted cash flow$14.98$18.16
Precedent transactions$10.88$13.97
Offer $15.00
Implied value per Aveo Pharmaceuticals, Inc. share by analysis, from Moelis.