Carlyle, Hellman & Friedman to buy drug research firm PPD for $3.9 bn
05 Oct 2011
Private equity firms Carlyle Group and Hellman & Friedman are set to buy drug research firm Pharmaceutical Product Development Inc (PPD) for $3.9 billion in cash, in one of the largest leveraged buyouts this year.
The deal comes after Carlyle held negotiations for nearly a year and outbid rivals like Blackstone Group and Kohlberg Kravis Roberts & Co.
PPD provides outsourced clinical research and laboratory services to drug companies. While it is mainly known for conducting all aspects of drug development for its clients, it also invests directly in developing new products through its compound partnering programme.
The Wilmington, North Carolina-based company's clients include pharmaceutical, biotechnology, medical device, academic and government organisations.
It has offices in 44 countries, employs more than 11,000 professionals and generated revenues of $1.4 billion last year.
Under the terms of the deal that has been approved by the board of PPD, Carlyle and Hellman & Friedman will together acquire the outstanding common shares of PPD for $33.25 per share in cash, representing a premium of 29.6 per cent over PPD's closing price on 30 September 2011.