Brown Gibbons Lang & Company (BGL) today announced the divestiture of Kentucky BioProcessing (KBP) by Owensboro Health (Owensboro) to a Division of Reynolds American (Reynolds). BGL acted as financial advisor to Owensboro and provided its board with a fairness opinion.
KBP is a biotechnology company focused on the expression, extraction, separation, and purification of plant-made proteins using tobacco plants. The Company manufactures monoclonal antibodies (mAbs), vaccine antigens, and biotherapeutic proteins. Target products include mAbs for rabies vaccines and virus-like particles (VLPs) for HPV vaccines. Additionally, the Company facilitates the growth and extraction of tobacco plant components for potential use in a variety of consumer products.
Owensboro Health is a not-for-profit health care system located in Owensboro, Kentucky. The 477-bed Owensboro Regional Hospital has been recognized by Healthgrades as a Distinguished Hospital for Clinical Excellence for the fifth year in a row and one of America’s 100 Best Hospitals in 2013. The system includes an acute care hospital, a medical group, numerous clinics, diagnostic centers, wound healing centers, a cancer center, home care services, and the Healthpark, a medical-based fitness center.
Located in Winston-Salem, North Carolina, Reynolds American Inc. (NYSE: RAI) is the parent company of R.J. Reynolds Tobacco Company, the second largest U.S. tobacco company; American Snuff Company, LLC; Santa Fe Natural Tobacco Company, Inc.; and several other subsidiaries. As the population increases its focus on health and wellness, the company continues to diversify into markets other than consumable tobacco products.
“The sale of KBP is another step in a tremendous success story. In 2006, plant-based pharmaceuticals were still largely conceptual. Owensboro Health had a great opportunity to act as a catalyst in making that concept a reality on a global level,” said Owensboro Health president and CEO Philip Patterson. “This sale is a natural transition to a long-standing partner in order to allow KBP to reach its full potential, and we are looking forward to seeing what KBP will achieve.”
Manfred Steiner and Tim Andruszkiewicz led the BGL transaction team.