Despite the withdrawal of an investor, Langhorne-based Nexgel successfully finalized its acquisition of Celularity’s regenerative biomaterial products, a deal that is expected to nearly triple the company’s annual revenue to around $35 million, writes John George for the Philadelphia Business Journal.
CEO Adam Levy said that the Bucks County wound care manufacturer finalized the deal through a structure he likened to a “three-team trade” in Major League Baseball, helping bring it across the finish line.
Nexgel first disclosed the pending deal in mid-February and, on March 10, announced it had signed a definitive agreement to acquire Celularity’s product portfolio, with closing scheduled for the final day of March. The company agreed to pay $15 million in cash upfront, along with up to $20 million in additional milestone payments based on net sales targets tied to the portfolio.
After an investor withdrew from the planned convertible note financing, Nexgel turned to Sequence LifeSciences, a biomedical manufacturing company with an existing relationship with Celularity, which invested $5.5 million.
The revised deal gives Celularity $5.3 million in cash and $5 million in convertible debt tied to Nexgel stock, along with up to $20 million in milestones, while Sequence becomes the contract manufacturer.
Read more about Langhorne-based Nexgel and the acquisition of Celularity’s regenerative biomaterial products in the Philadelphia Business Journal.
_______
