WuXi PharmaTech Enters Into $3.3 Billion LBO

August 17, 2015

Willkie represents the Special Committee in one of the largest management-led LBOs of a Chinese-based, U.S. listed company. 

On August 14, WuXi PharmaTech Inc. (NYSE: WX) announced a $3.3 billion going private agreement, one of the largest management-led leveraged buyouts of a Chinese-based U.S. listed company to date. Willkie served as U.S. counsel to the Special Committee formed by the board of directors.

Under the terms of the agreement, a newly formed parent company agreed to pay cash consideration equal to $5.75 per ordinary share and $46 per American Depositary Share, each representing eight shares, of the company, or approximately $3.3 billion in aggregate cash consideration. Subject to shareholder approval and other customary closing conditions, the transaction is expected to close during the fourth quarter of 2015.

Investors include affiliates for funds managed or advised by Ally Bridge Group Capital Partners, Boyu Capital, Temasek Life Sciences Private Limited, Ping An Insurance and Hillhouse Capital. Several founders and executive officers of the company, including Dr. Ge Li, chairman and chief executive officer, elected to roll-over their interests in the company.

WuXi PharmaTech is a leading open-access R&D capability and technology platform company serving the pharmaceutical, biotechnology, and medical device industries with operations in China and the United States.

The deal was handled by partners Steven Gartner, Jeffrey Hochman and Jeffrey Goldfarb, and associates Bradley Friedman and Christopher Edwab.