JOHNSON CITY, Tenn. - Crown Laboratories, Inc., a global skincare company, has finalized its acquisition of biotechnology firm Revance Therapeutics, Inc. (NASDAQ: NASDAQ:RVNC). The transaction, which concluded with a tender offer for Revance's shares at $3.65 each, resulted in Crown acquiring approximately 82% of Revance's outstanding shares by the offer's expiration on Monday. The deal values Revance at approximately $383 million, with the company generating revenues of $257 million in the last twelve months.
The acquisition process was completed with a second-step merger, leading to the delisting of Revance's common stock from the NASDAQ Global Select Market. Financial advisory for the transaction was provided by Leerink Partners and PJT Partners (NYSE:PJT), while Kirkland & Ellis LLP and Lowenstein Sandler LLP served as legal advisors to Crown.
Crown, known for its diverse portfolio of aesthetic, premium, and therapeutic skincare products, has been recognized for its rapid growth, appearing on the Inc. 5000 Fastest Growing Privately Held Companies List for eleven years. The company distributes its products to over 50 countries worldwide. The acquisition target, Revance, demonstrated strong revenue growth of 26% in the last twelve months, despite operational challenges.
The completion of this acquisition marks a significant milestone for Crown, reinforcing its status as a leader in the dermatology and aesthetics industry. The merger is expected to expand Crown's innovative offerings, although the company cautions that forward-looking statements regarding future financial performance and benefits of the acquisition are subject to various factors and uncertainties. For deeper insights into the biotech sector and similar investment opportunities, InvestingPro offers comprehensive analysis and financial metrics for over 1,400 US-listed companies.
This news is based on a press release statement from Crown Laboratories.
In other recent news, Revance Therapeutics has been at the center of significant developments. Mizuho (NYSE:MFG) Securities maintained a neutral rating on Revance, with a steady price target of $3.65. This followed the announcement of Crown's raised acquisition offer to $3.65 per share for Revance, a move welcomed by Revance's Board of Directors. Teoxane, a previous contender in the acquisition, withdrew its bid after failing to secure necessary financing, effectively clearing the way for Crown's acquisition.
Simultaneously, Revance has entered a collaboration with Dermata Therapeutics to initiate a Phase 2a clinical trial for a novel treatment of primary axillary hyperhidrosis. The trial will assess the efficacy of a combined topical application of Dermata's product, Xyngari™, with Revance's botulinum toxin type A product, Daxxify®.
These developments mark a significant phase in Revance's trajectory, with the acquisition process by Crown expected to conclude soon and the promising clinical trial with Dermata underway. As these events unfold, Mizuho Securities and other analysts will continue to monitor and provide updates on the situation.
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