Carlyle Group In Talks to Buy PPD

The Carlyle Group is in talks to buy drug research services provider Pharmaceutical Product Development Inc., Reuters reported Monday. A sale of PPD could fetch around $4 billion, according to industry analyst predictions this summer. Bloomberg first reported news of the talks.

(Reuters) – Private equity firm Carlyle Group CYL.UL is in talks to buy drug research services provider Pharmaceutical Product Development Inc (PPDI.O), a source familiar with the matter said on Monday.

Bloomberg earlier reported the news.

The company said in July its board had asked management to review its strategic plan. PPD could fetch around $4 billion, or about $35-$37 a share, industry analysts said at the time.

PPD, which mostly provides late-stage drug research services to drugmakers, has a market capitalization of $3.03 billion. Its stock closed at $31.51, up $4.91 on Monday.

Carlyle may seek to include another private equity firm into the deal, said the source, who declined to be named because the talks were not public.

The discussions with Carlyle may still falter and a deal could fail to emerge, the source said.

Carlyle and PPD were not immediately available for comment. (Reporting by Jessica Hall in Philadelphia, additional reporting by Megan Davies in New York; editing by Carol Bishopric) (For more M&A news and our DealZone blog, go to here)