Tags: KKR | Clinical | Trials | Company

KKR to Buy Second Clinical Trials Company This Year

Wednesday, 31 Jul 2013 05:39 PM

KKR & Co. LP said on Wednesday it had agreed to acquire ReSearch Pharmaceutical Services Inc (RPS) from private-equity peer Warburg Pincus LLC, marking its second announced investment in a global contract research organization in as many months.

Terms of the deal were not disclosed, but a person familiar with the matter said RPS had earnings before interest, tax, depreciation and amortization of about $30 million.

In June, KKR said it was buying clinical research group PRA International from Genstar Capital LLC for an undisclosed amount, but a source familiar with the matter said the agreed price was around $1.3 billion.

Upon closing both deals, KKR plans to merge PRA and RPS, with PRA Chief Executive Officer Colin Shannon leading the combined company, according to a press release issued by KKR. The deal is expected to close in the third quarter.

Warburg Pincus took RPS private in 2011 for $227.3 million. The Fort Washington, Pennsylvania-based clinical trials company has more than 5,000 employees and operations in more than 64 countries, according to its website.

Citigroup and law firm Kirkland & Ellis LLP advised RPS. Credit Suisse, Jefferies LLC and UBS Investment Bank served as financial advisers to KKR. Simpson Thacher & Bartlett served as legal counsel for KKR.

© 2015 Thomson/Reuters. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved