Clayton, Dubilier & Rice has closed its acquisition of London-based Huntsworth plc, a healthcare and communications company. The deal was valued at 577 million pounds.
LONDON AND NEW YORK, 1 May 2020 — Clayton, Dubilier & Rice today announces the completion of the acquisition of Huntsworth plc, a leading provider of specialty services that help pharmaceutical and biotech companies commercialize new therapies and support the life cycle of drug innovation for multiple years, from Phase II and Phase III trials to loss of exclusivity. As of today, the transaction was valued at £577 million.
Huntsworth’s broad range of value-added service include Medical Affairs, Market Access, and Marketing services to a large and diverse portfolio of clients consisting primarily of pharmaceutical and biotechnology companies in the U.S. and Europe. Over the last 10 years, the business has transformed from a traditional communications agency to a diversified Pharma Commercialization Services platform (~85% of the Operating Profit of the group is from its Health division today), offering end-to-end solutions to Pharma and Biotech customers.
CD&R believes that Huntsworth’s underlying markets are attractive and underpinned by long term, stable pharma-related trends, such as demographics, increasing outsourcing, growing new product launches, shift to more specialized drugs (where targeted, thoughtful engagement is key), and increasing complexity and emergence of new marketing channels.
“We believe Huntsworth is a dynamic and competitively well-positioned company dedicated to meeting the needs of customers with cutting edge services to ensure their long-term success,” said Eric Rouzier, CD&R Partner. “We are proud to be part of a business with such dedicated employees and exceptional growth prospects.”
The investment leverages CD&R’s operating experience in healthcare, as well as specific expertise with similar channels and hybrid healthcare business models. CD&R will further integrate expertise in the industry with Liam FitzGerald, Operating Advisor to CD&R funds, taking on the role of Chairman. Mr FitzGerald is the former CEO of UDG Healthcare, the parent of Ashfield Healthcare, a similar platform to Huntsworth.
“Huntsworth presented an exciting opportunity for CD&R to invest in a company that we believe is strongly weighted towards a higher growth, defensive sector, underpinned by long-term, stable trends,” said Liam FitzGerald. “The management team has a demonstrated record of success; our vision aligns with theirs; and we look forward to supporting the company as it seeks to accelerate toward the next stage of profitable growth.”
Clayton, Dubilier & Rice is a private investment firm with a strategy predicated on building stronger, more profitable businesses. Since inception, CD&R has managed the investment of $30 billion in 90 businesses representing a broad range of industries with an aggregate transaction value of approximately $140 billion. The Firm has offices in New York and London. For more information, please visit www.cdr-inc.com.
Huntsworth PLC is an international healthcare and communications group. The Group’s principal area of focus is health, which provides marketing and medical communications services to healthcare clients, which are primarily large and mid-size pharmaceutical and biotech companies. It also has a smaller Communications group, which provides a wide range of communications and advisory services including strategic communications, public affairs, investor relations and consumer marketing. Huntsworth is headquartered in London and operates 46 offices around 20 countries with approximately 2,000 employees. For more information, please visit www.huntsworth.com/.
 Liam Fitzgerald is an Operating Advisor engaged by CD&R Fund X. Senior Advisors and Operating Advisors are not partners or employees of Clayton, Dubilier & Rice, LLC or CD&R LLP.