Cinven to acquire Medpace in US$915m deal
US-based Medpace has been expanding its presence in Europe
European private equity firm Cinven has agreed to acquire US-based contract research organisation Medpace from buyout firm CCMP Capital Advisers for US$915m.
Founded in 1992, Medpace is headquartered in Cincinnati, Ohio and provides management services to the pharma, biotech and medical device industries.
It has expertise in therapeutic areas such as metabolic, cardiovascular, oncology, anti-viral/anti-infective, central nervous system and medical devices.
The company has global operations in more than 45 countries. It employs over 1,500 people, with approximately 40% of clinical operations staff in Europe. In 2013, Medpace reported EBITDA of US$94m.
London-based Cinven’s healthcare team has been focused for some time on the CRO industry as an attractive market in which to invest. Increased R&D spend by the pharma and biotech industry, due to the growing number and complexity of clinical trials required to bring new molecules to market, is expected to fuel strong growth in the sector.
In addition, Medpace has been rapidly expanding its presence in Europe and has the opportunity to achieve greater penetration across Europe and Asia, where Cinven has a strong track record of portfolio company growth.
Medpace will continue to be led by August Troendle, the company's founder and current President and CEO. He formerly worked at Sandoz (Novartis) within clinical development and for the US Food and Drug Administration.
Troendle and the Medpace management team will remain significant minority investors alongside Cinven.
'We are very excited about the opportunity of working with Cinven,' said Troendle. 'Medpace has generated significant growth recently in Europe, so it made huge sense for us to partner with a private equity sponsor with a strong European presence and the ability to help us expand our operations in Asia.'
