KKR Acquires PRA International from Genstar

KKR Acquires PRA International from Genstar

PRA International, a clinical research organization and a portfolio company of Genstar Capital, has been acquired by KKR. The transaction is expected to close in the third quarter of 2013.

PRA International is an international clinical research organization (CRO) that provides services on a contract basis to the pharmaceutical and biotechnology industries. Services include 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. PRA has more than 5,300 employees located in over 50 offices worldwide. Since 2000, PRA has performed approximately 2,000 clinical trials in over 80 countries on behalf of over 300 clients. The company is headquartered in Raleigh, NC (www.praintl.com).

“PRA is a well-positioned global CRO platform led by a talented management team with a long track record of success. As one of the fastest growing companies in the CRO sector, PRA is known for its strong client relationships and differentiated therapeutic expertise. PRA management and KKR share the common ambition of building on this platform by continually improving service offerings to clients and providing compelling career opportunities for employees,” said Jim Momtazee, Member of KKR and Head of KKR’s Health Care investing team.

Fully committed debt financing for the acquisition will be provided by Credit Suisse, Jefferies, UBS Investment Bank, and KKR Capital Markets.

KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $78 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).

Genstar acquired PRA in a take-private transaction in 2007 for $797 million. During the term of ownership Genstar invested additional capital in PRA and completed several add-on acquisitions, strengthened the company’s European operations, enhanced its technology, and developed its infrastructure to support continued expansion in emerging markets. As a result, the company generated significant revenue and EBITDA growth compared to the industry.

“The Genstar team has extensive experience building businesses in the life sciences industry and with their help we have grown PRA into a first class global CRO. Their support enabled us to better serve our clients in the U.S. and internationally. Targeted investments, particularly in Eastern Europe and Asia, expanded our geographic coverage and, as a result of this strong infrastructure, we have a growing list of new business opportunities,” said Colin Shannon, President and CEO of PRA. “We have been very fortunate with our partnership with Genstar and believe our company is positioned for continued growth as a KKR portfolio company.”

Genstar Capital invests in middle-market companies within the life sciences, healthcare services, financial & business services, software & software services, and industrial technology industries. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-24-13

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