Blackstone Backs Cryoport's Strategic Play in Life Sciences with $275M Investment as MVE Acquisition Closes Gap in Cold Chain Solutions

Major Deal Signals Consolidation in Temperature-Controlled Logistics

Cryoport and Blackstone have joined forces in a transformative move for the life sciences cold chain industry. The healthcare and logistics-focused investment giant is injecting $275 million into Cryoport to fund the company’s acquisition of MVE Biological Solutions from Chart Industries, positioning two industry leaders to capture a rapidly expanding market in cell and gene therapy supply chain management.

The Transaction: Scale Through Strategic Acquisition

Under the all-cash transaction valued at $320 million, Cryoport will absorb MVE Biological Solutions, a Georgia-based manufacturer of vacuum-insulated storage and transportation systems for life sciences applications. MVE, which generated approximately $83.7 million in revenue during 2019, operates three primary facilities across Georgia, Minnesota, and China, serving over 300 customers with advanced freezer systems and dewars for biotech and pharma logistics.

The combined entity is expected to reach a revenue run rate exceeding $160 million once MVE integrates with Cryoport’s existing portfolio—which includes recent acquisitions like CRYOPDP—and should be immediately accretive to earnings.

Blackstone’s Structured Investment in Cryoport

To fund this landmark acquisition, Blackstone Tactical Opportunities will deploy capital in two forms: $250 million through a newly created Series C Convertible Preferred stock offering at $1,000 per share, plus $25 million in common stock priced at $37.01 per share. The preferred stock carries a 4% coupon and converts to common shares at $38.62 each—representing a 15% premium to Cryoport’s 30-day volume-weighted average price as of August 20, 2020.

Cryoport will use the investment to cover the MVE purchase price, with the remainder sourced from existing cash reserves. Upon transaction close, Ram Jagannath, Blackstone’s Senior Managing Director and Global Head of Healthcare, will join Cryoport’s Board of Directors.

Why This Matters: Market Timing and Competitive Positioning

The life sciences logistics segment is experiencing explosive growth, with the cell and gene therapy market forecast to expand 30-40% annually. Cryoport’s leadership recognized that MVE’s deep expertise in cryogenic storage systems would create a genuine competitive moat—combining Cryoport’s logistics network and proprietary Cryoport Express shippers with MVE’s frozen storage infrastructure.

With the addition of MVE’s 226-person workforce and customer relationships, Cryoport essentially builds an integrated, end-to-end solution for sophisticated biopharma clients navigating the complexity of advanced therapy supply chains. This consolidation reduces fragmentation in the market and strengthens the combined entity’s value proposition.

Strategic Convergence: Two Life Sciences Incumbents Unite

Cryoport CEO Jerrell Shelton framed the acquisition as a continuation of the company’s mission to become the life sciences industry’s preeminent temperature-controlled supply chain partner. “Bringing MVE Biological Solutions under the Cryoport umbrella, which will include Cryoport Systems, Cryogene, and the recently announced agreement to acquire CRYOPDP, is expected to increase our revenue run rate to over $160 million and to be immediately accretive,” Shelton stated.

Ram Jagannath from Blackstone highlighted the investment thesis: “Life sciences and logistics are two of Blackstone’s highest-conviction investment areas, and we’re excited to back an industry-leader at the cross-section of these fast-growing sectors. Together, Cryoport and MVE offer a unique combination of industry knowledge, client coverage, engineering and innovation.”

Value Creation Pathways Identified

Beyond the obvious scale benefits, the acquisition unlocks several growth vectors: accelerating product innovation in cryogenic systems, expanding distributor relationships in the U.S. market, and scaling direct customer engagement globally. As cell and gene therapies move from experimental stage to commercial deployment, the demand for reliable, validated cold chain solutions is becoming mission-critical for outcome success.

Closing of the MVE transaction is anticipated by year-end 2020, pending customary regulatory approvals and closing conditions. Morgan Stanley and Latham & Watkins are advising Cryoport, while Goldman Sachs and Simpson Thacher & Bartlett are counsel to Blackstone.