Clayton, Dubilier & Rice has completed the acquisition of Huntsworth, a provider of specialty services that help pharmaceutical and biotech companies commercialise new therapies and support the life cycle of drug innovation for multiple years, from Phase II and Phase III trials to loss of exclusivity. The transaction was valued at GBP577 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 US and Europe. Over the last 10 years, the business has transformed from a traditional communications agency to a diversified Pharma Commercialisation Services platform (~85 per cent 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,” says 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,” says 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.”
