Maravai LifeSciences Shares Fall After Rejecting Potential Takeover By Private Equity

Maravai LifeSciences Holdings Inc MRVI reportedly attracted takeover interest from Thomas H. Lee Partners with a non-binding offer, though the offer price could not be learned.

Maravai is a U.S. provider of capping reagents for COVID-19 vaccines. 

Maravai rejected the offer, and there is no certainty a new bid will follow or any deal will be reached, Reuters reported, citing sources.

The report said the acquisition approach showed how Maravai has become a takeover target after it lost more than 60% of its value from its August 2021 peak. The surge in demand for mRNA technology-driven COVID-19 vaccines propelled the growth of its reagent business.

Subsequently, Maravai has been actively endeavoring to transition towards other mRNA-based vaccines.

Maravai rejected a $42 per share all-cash offer from laboratory supplies vendor Sartorius AG SARTF in February 2022 as inadequate.

Last week, Maravai LifeSciences cut its FY23 sales guidance from $420-$460 million to $400-$440 million versus the consensus of $430.17 million.

The company forecast adjusted EPS of $0.27-$0.33, down from $0.32-$0.38 compared to the consensus of $0.35.

In October 2022, Maravai LifeSciences appointed William "Trey" Martin III, a former Danaher executive, as its new CEO.

But soon after, it had to reinstate its former CEO, Carl Hull, as interim CEO as Danaher filed a lawsuit alleging Martin was in breach of a noncompetition agreement.

This delayed Martin's appointment, who is expected to assume the role of CEO on July 27, 2023. Hull would continue to serve as executive chairman and interim CEO.

Price Action: MRVI shares are down 6.47% at $14.03 at publication Tuesday.