The board of directors of contract research organization PPD has approved a $3.9 billion all cash deal which will take the company private after its acquisition by the Carlyle Group and Hellman & Friedman. PPD offers formulation development and analytical services for a wide variety of OINDPs, including DPIs, MDIs, inhalation solutions, and nasal aerosols. The deal, in which Carlyle and Hellman & Friedman will pay $33.25 per share for PPD’s outstanding common shares, is expected to be completed by the end of 2011, subject to approval by shareholders.
Fred Eshelman, founder and executive chairman of PPD commented, “The sale of PPD to The Carlyle Group and Hellman & Friedman provides an attractive return for our shareholders, while also ensuring a secure foundation and commitment to investment, innovation and excellence for PPD clients and employees as the company builds on its 25-year history of success.”
Carlyle Managing Director and head of the healthcare group Karen H. Bechtel said, “Fred Eshelman and PPD’s management team have built a leading and extremely high quality global research and services organization that will continue to help pharmaceutical and biotech companies develop new drugs at lower costs. We look forward to helping expand and enhance PPD’s platform and broad spectrum of therapeutic expertise.”
Allen Thorpe, Hellman & Friedman Managing Director, praised the company’s employees, seeming to suggest that the merger would not threaten jobs: “PPD has an outstanding global CRO franchise, and we are delighted to partner with its highly talented and capable employees around the world. They are well known for unwavering commitment to their clients, and we look forward to supporting that commitment to bring the broadest and deepest set of capabilities to PPD’s clients. We look forward to the company’s continued growth and expansion under our ownership.”
Read the PPD press release.
