Pamplona Capital Management is to acquire Perexel International Corporation for USD88.10 per share in cash in a transaction valued at approximately USD5.0 billion, including Parexel’s net debt.
The purchase price represents a 27.9 per cent premium to Parexel’s unaffected closing stock price on 5 May, 2017, the last trading day prior to published market speculation regarding a potential transaction involving the Company; a 38.5 per cent premium to the unaffected 30-day volume weighted average closing share price of Parexel’s common stock ended 5 May, 2017; and a 23.3 per cent premium to the Company’s undisturbed 52-week high.
“Today’s announcement is the culmination of a comprehensive review of the opportunities available to the Company, including interest solicited and received from multiple parties with the assistance of independent financial and legal advisors. Having considered these opportunities, the Parexel Board of Directors unanimously determined that this all-cash transaction and the significant, certain value it provides is in the best interest of Parexel shareholders, as well as our company,” says Josef von Rickenbach, Chairman and Chief Executive Officer of Parexel. “Parexel benefits from a strong operating foundation with expertise and resources to support our clients in their clinical trials around the world. However, as our results over the past year show, the market for biopharmaceutical services is evolving. We believe the more flexible corporate structure afforded by this transaction will better position us to advance Parexel’s strategy in light of these realities and to shape the Company to best capitalize on our exciting market opportunities.
“Pamplona has significant experience in the pharmaceutical and healthcare industries, and we are pleased to have their support as we work to realize the long-term opportunity for Parexel. This transaction and the meaningful value it delivers for our shareholders is a testament to the 19,600 employees who help our clients advance the development and commercialisation of new medical therapies worldwide, and we will remain focused on providing our clients with the service and support that have long set Parexel apart.”
Jeremy Gelber, MD, Partner at Pamplona, says: “We have great respect for the global leadership that Josef and the talented employees at Parexel have built. We are excited to partner with a company and a team that have a strong track record in helping to successfully navigate the complexities innate to the biopharmaceutical industry and bring new therapies to market.”
