On August 28th, 2023, life sciences giant Danaher Corporation announced its acquisition of Abcam plc, a leading provider of research antibodies and proteins, for a hefty $5.7 billion (total enterprise value). The deal marks a significant move for Danaher as it seeks to strengthen its foothold in the growing life sciences research market. Danaher paid $24.00 per share for Abcam, translating to a price-to-EBITDA multiple of around 29x estimated 2023 EBITDA, per the fairness opinion, and ~22.4x estimated 2024 EBITDA of $266m.Â
Diagnostic Tools EBITDA Multiples
The implied multiple was on the high end of the range compared to other diagnostics and life sciences tools companies.
The high-end multiple is likely primarily a factor of Abcam's elevated margins and lofty projected growth. According to the fairness opinion, Abcam's EBITDA is expected to grow at a 21.6% compound annual growth rate over the next five years.
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details for 180 diagnostics and life sciences deals going back to 2010, 77 of which include reported EBITDA multiples. The diagnostics / life sciences database can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.