Partners Group will exit its longstanding holding in PCI Pharma Services, a global contract manufacturing and development organisation, generating significant returns for its clients upon completion.
As part of the transaction, in which a consortium led by Bain Capital and Kohlberg & Company will acquire a majority stake in PCI, Partners Group has agreed to acquire a minority stake to support the company in its next phase of growth.
In 2016, Partners Group acquired a majority stake in PCI with an investment thesis to establish the company as a strategic, mission critical partner to the pharmaceutical and life sciences industry.
During this phase of ownership, Partners Group repositioned PCI into higher growth, higher value capabilities, including a greater focus on patented molecules, augmenting clinical trial service capabilities, and expanding into development and manufacturing.
In 2020, Kohlberg & Company and Mubadala Investment Company acquired a majority stake in PCI while Partners Group retained a minority stake. During this phase of ownership, PCI expanded into advanced drug delivery services, development and manufacturing of biologics, and sterile fill-finish services.
Over the past decade, as a result of these value creation initiatives, PCI transformed from a regional commercial packaging organisation into a global CDMO, providing a suite of integrated solutions that “follow the molecule” throughout the continuum of a therapy’s full lifecycle.
Following its minority investment in the new transaction, Partners Group will support the ownership group and management team in executing a value creation plan to further expand PCI’s competitive positioning. This includes continued investment in specialised capabilities and expansion that deepens PCI’s breadth and competitive positioning.
PCI, founded in 2012 and headquartered in Philadelphia, Pennsylvania, is at the forefront of an industry theme that Partners Group has been tracking since 2013, and benefits from several megatrends and secular tailwinds, including the increase in disease prevalence rates across several life-threatening conditions and increasing biopharmaceutical R&D spending that is driving a steady pipeline of new, life-saving drugs to address patients’ unmet needs.
Ropes & Gray provided legal advice to Partners Group in connection with the transaction.
