Pharmaceutical Product Development, LLC (PPD) announced that its existing owners, affiliates of Hellman & Friedman and affiliates of The Carlyle Group (Carlyle), have entered into definitive agreements to recapitalize PPD.
Additionally, investors in the existing owners, a subsidiary of the Abu Dhabi Investment Authority (ADIA) and an affiliate of GIC, Singapore’s sovereign wealth fund (GIC), have come on board as direct investors in the contract research organization (CRO).
“This transaction enables the current and new owners to reinvest and help drive the next phase of PPD’s growth,” Elizabeth Kuronen, vice president, corporate communications, PPD, told Outsourcing-Pharma.com.
“At the same time, PPD remains strong, our strategy is sound and we are driven by the commitment to help our clients deliver life-changing therapies.”
In December 2011, Carlyle and Hellman & Friedman acquired PPD in a transaction valued at around $3.6bn. Today, the transaction is based on a total enterprise value of $9.05bn, the company said.
“A few of our key objectives over the next five years will be to continue to expand our portfolio of offerings, identify innovative solutions around the selection of sites and patients and by all means retain and recruit industry leading talent that complements the winning culture we already have today,” explained Kuronen.
Through the issuance of new senior unsecured holdco notes, PPD expects to raise approximately $550m, which, in addition to proceeds from the investments, will finance the recapitalization, according to the company.
“We have a strong management team, the best employees in the industry and supportive owners with the financial foundation to back additional investments – all of which will enable us to build on our position as a leading global CRO,” said Kuronen.
The transaction is expected to close in the second quarter of 2017.