Ricerca Biosciences bought by private equity fund; 199 jobs saved says CEO

18-Nov-2014 - Last updated on 18-Nov-2014 at 14:04 GMT

Ricerca bought by Main Market Partners

Ricerca Biosciences has been bought by private equity group Main Market Partners in a deal that means the contract research organisation's (CRO) 199 employees keep their jobs.

The agreement – terms of which were not disclosed – follows several months of discussions between Ricerca and potential suitors.

The CRO said that Main Market Partners had been selected as buyer based on “value, strategic commitment to the Company's clients, employees, and external stakeholders, and an aggressive timetable for closing the transaction.”

According to its website, Main Market Partners and sister company, Croley, Martell & Associates, provides “debtor workout, crisis management, performance improvement, and due diligence services in support of middle market companies, private investors, and banks.”

Ricerca announced its restructuring plans in August, warning that if a buyer could not be found all of the firm’s 199 staff would lose their jobs.

This was confirmed by then CEO Tim Derrington who told us at the time that the layoffs would take place between October 27 and November 10 if “ongoing discussions with several parties” did not result in an acquisition.

Ricerca’s new CEO Clifford Croley – who served as chief restructuring officer on behalf of Croley, Martell & Associates - told Outsourcing-pharma.com the deal has changed the CRO's layoff plans.

Croley said that: “The 199 jobs will be retained” adding that “there may be some adjustment as we bring in additional staff or upgrade capabilities. “

This was echoed by company executive VP Michael Martell in an official statement, who said: "Initial enhancements at Ricerca will include a revitalized leadership team, including key members of the Company's existing staff, and enhanced capital support to approach the marketplace with an aggressive and direct effort."

Ricerca is a full-service CRO that offers investigational new drug (IND) strategy and design, preclinical discovery services, pivotal toxicology, support services and post-IND services.

News of the sale comes a year and a half after Ricerca signalled its intention of expanding in the US with funds raised through the sale of its R&D facility in Lyon, France to contract research organisation (CRO) WIL Research.