Genstar Capital, a middle market private equity firm that focuses on investments in the life sciences, healthcare, financial services, software and industrial technology industries, is to sell PRA to funds managed by Kohlberg Kravis Roberts (KKR).
Genstar acquired PRA in a take-private transaction in 2007 for USD797m. Since then, working with newly appointed chief executive Colin Shannon and a new senior management team, Genstar invested in PRA and completed key strategic add-on acquisitions, strengthened the company’s European operations, enhanced its technology, and developed its infrastructure to support continued expansion in emerging markets.
Shannon says: "The Genstar team has extensive experience building businesses in the life sciences industry and with their help we have grown PRA into a first class global CRO. Their support enabled us to better serve our clients in the US and internationally. Targeted investments, particularly in Eastern Europe and Asia, expanded our geographic coverage and, as a result of this strong infrastructure, we have a growing list of new business opportunities. We have been very fortunate with our partnership with Genstar and believe our company is positioned for continued growth as a KKR portfolio company."
Jean-Pierre L Conte, chairman and managing director of Genstar Capital, says: "In 2007 we were attracted by the growth opportunities that existed within the CRO industry and particularly with PRA where we believed our leadership team under Colin Shannon could accelerate growth and profitability initiatives to successfully drive change at PRA and build the company on a sustained basis. This is an excellent outcome for our investors, PRA and their clients and, importantly, the company continues to have a strong partner in KKR. The PRA leadership team under Colin Shannon has delivered over 100 per cent of what they committed to through a tough economic period. Genstar is proud to have been a part of building this company and working with such a capable leadership team."
The transaction is expected to close in the third quarter of 2013. Jefferies acted as exclusive financial advisor to Genstar and PRA, and Latham & Watkins acted as legal advisor.
