Slideshow: More LBO Targets In The CRO Market
The Carlyle Group and Hellman & Friedman’s $3.9 billion agreement to buy Pharmaceutical Product Development Inc. marks the latest example of buyout shops buying companies that run clinical trials for pharma and biotech companies.
These so-called contract research organizations, or CROs, are expected to expand and consolidate, making it highly likely we could see more LBOs. Click through below to see a selection of other noteworthy CROs, presented alphabetically, that could look attractive to sponsors. These include public companies that, like PPD, might find it easier to navigate the market’s consolidation under private ownership; public companies with recent changes at the CEO level; and private equity-owned companies, including one that’s been in its owner’s portfolio for almost four years now.
Sources for the slideshow below are Yahoo, Capital IQ, company web sites, Morningstar.
Bernard Vaughan is a Senior Editor at Buyouts Magazine. Follow his tweets @BVaughanReuters.
Snapshot: Founded in 1947, the Wilmington, Mass.-based company provides research models and preclinical and clinical support services. Serves pharma, biotech, government, and academic organizations.
Market Cap: $1.41B
Oct. 3 closing share price: $28.03
Notes: Employs 7,500 in 60 facilities in 16 countries. Revenue of $1.13 billion in 2010. Morningstar believes its shares are undervalued and expects earnings to increase in the coming quarters. Recently won a $34 million, five-year grant from the National Institutes of Health (“sticky” in PE parlance?) in the second phase of something called the “Knockout Mouse Project.”
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