NEW YORK--(BUSINESS WIRE)--
KKR, a leading global investment firm, today announced the signing of a
definitive agreement to acquire ReSearch Pharmaceutical Services Inc.
("RPS"), a leading global contract research organization (CRO), from
Warburg Pincus. This follows an announcement on June 24, 2013 in which
KKR announced the acquisition of another leading CRO, PRA International
("PRA"). Terms of the transaction were not disclosed.
Upon close of both of the transactions, PRA and RPS will merge, with PRA
Chief Executive Officer Colin Shannon leading the combined enterprise.
RPS will continue to operate independently as the newly formed Strategic
Solutions Division of PRA under the continued leadership of RPS
President Harris Koffer and Executive Vice President Samir Shah. As part
of the transaction, RPS Chief Executive Officer Dan Perlman is leaving
RPS to pursue other interests outside the CRO industry.
RPS is a leading provider of outsourced clinical development services
and is known for pioneering the Embedded model of functional clinical
development outsourcing. Founded in 1998, RPS is one of the fastest
growing CROs with more than 4,000 employees located in over 64 countries.
Harris Koffer, President of RPS, stated: "This transaction represents
the next step in the evolution of RPS and its Embedded service model. I
can think of no better partner for RPS than PRA and am excited about the
opportunities going forward for the clients and employees of RPS."
"RPS will continue to focus on providing its unique Embedded model as
well as new innovative strategic solutions," said Samir Shah, Executive
Vice President of RPS. "As a division of PRA, we will continue to
operate exactly as we do today, which should enable a seamless
integration with absolutely no disruption for our clients and business
as usual for our employees."
Colin Shannon, President and CEO of PRA, stated: "We are excited about
the potential to deliver even greater value to our clients through this
combination. By bringing together PRA and RPS, we will be able to offer
a more comprehensive range of services across all segments of the
biopharmaceutical industry through our expanded capabilities,
therapeutic expertise, and greater geographic presence."
"This merger brings together two highly complementary companies with PRA
as a leader in traditional programmatic outsourced clinical development
and RPS as a pioneer of the innovative Embedded clinical development
model," said Jim Momtazee, Member of KKR and Head of its Health Care
investing team. "Together, they will become an even stronger
organization with significant opportunities for continued growth and
innovation with a focus on providing high-quality service to clients and
attractive career opportunities for employees."
The transaction, which is subject to regulatory approvals and other
customary closing conditions, is expected to close in the third quarter
of 2013.
Citigroup acted as exclusive financial advisor and Kirkland & Ellis LLP
acted as legal advisor to RPS. Credit Suisse, Jefferies LLC, and UBS
Investment Bank served as financial advisors to KKR. Simpson Thacher &
Bartlett LLP served as legal counsel to KKR. Fully committed debt
financing will be provided by Credit Suisse, Jefferies, UBS Investment
Bank, Citigroup, and KKR Capital Markets.
About RPS
Founded in 1998, RPS is a leading global provider of innovative
outsourcing clinical development solutions, providing comprehensive
Phase I-IV services to meet the evolving needs of the biopharmaceutical,
medical device and diagnostic industries. RPS is one of the fastest
growing CROs with more than 4,000 employees located in over 64 countries.
About PRA
PRA International, headquartered in Raleigh, NC, is a leading
international CRO with over 5,300 employees offering services in 80+
countries. The company provides services on a contract basis to the
pharmaceutical and biotechnology industries. PRA offers comprehensive
services including the filing of Investigational New Drug and similar
regulatory applications, management and implementation of Phase I
through IV clinical trials, preparation and submission of New Drug
Applications, and post‐marketing surveillance on an international basis.
About KKR
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $83.5 billion in assets under
management as of June 30, 2013. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with fund investors
through its client relationships and capital markets platform. KKR & Co.
L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and
"KKR," as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment
vehicles, as appropriate.
Media Contacts
KKR
Kristi Huller, 212-230-9722
Kristi.Huller@kkr.com
or
RPS
Sean
Quinn, 215-540-0700
squinn@rpsweb.com
or
PRA
Roger
Boutin, 434-951-3924
BoutinRoger@PRAIntl.com
Source: KKR & Co. L.P.
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