PPD to be bought by private equity in US$3.9bn deal

Published: 5-Oct-2011

US contract research organisation will go private upon closure of the deal


Pharmaceutical Product Development (PPD) is to be bought by US private equity firms The Carlyle Group and Hellman & Friedman for US$3.9bn in cash.

Wilmington, NC, US-based contract research organisation PPD will become a private company after the deal has closed in the fourth quarter.

PPD’s board of directors has unanimously approved the merger.

The firm provides drug discovery, development and lifecycle management services and employs more than 11,000 people in 44 countries. It reported a net income of $187.5m on revenue of $1.47bn in 2010.

‘The sale of PPD to The Carlyle Group and Hellman & Friedman provides an attractive return for our shareholders, while also ensuring a secure foundation and commitment to investment, innovation and excellence for PPD clients and employees as the company builds on its 25-year history of success,’ said Fred Eshelman, founder and executive chairman of PPD.

Karen Bechtel, managing director and head of the healthcare group at Carlyle, said Eshelman and PPD’s management team have built a high quality global research and services organisation that will continue to help pharmaceutical and biotech companies develop new drugs at lower costs.

‘We look forward to helping expand and enhance PPD’s platform and broad spectrum of therapeutic expertise,’ she said.

Closing of the transaction is subject to certain conditions, including the approval of PPD’s shareholders, regulatory approvals and the satisfaction of other customary closing conditions.

Financing for the deal consists of a combination of equity provided by Carlyle Partners, a $13.7bn US investment fund, and Hellman & Friedman Capital Partners, an $8.9bn fund, and external debt financing commitments provided by Credit Suisse, JP Morgan, Goldman Sachs and UBS.

You may also like