KKR buys ReSearch Pharmaceutical from Warburg Pincus


drug-pharma-medical-healthcareKKR has bought contract research organisation ReSearch Pharmaceutical Services from fellow private equity giant Warburg Pincus.

The deal is KKR’s second in the space within weeks following its purchase of PRA International, which it plans to merge with the latest acquisition.

Financial details of the deal were not disclosed.

ReSearch, which was founded in 1998, provides outsourced clinical development services and has more than 4,000 employees in over 64 countries.

KKR’s head of healthcare investment Jim Momtazee said, “This merger brings together two highly complementary companies with PRA as a leader in traditional programmatic outsourced clinical development and RPS as a pioneer of the innovative Embedded clinical development model.

“Together, they will become an even stronger organization with significant opportunities for continued growth and innovation with a focus on providing high-quality service to clients and attractive career opportunities for employees.”

The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the third quarter of 2013.

Last month it merged KKR was preparing a dividend recapitalisation for Australian healthcare company GenesisCare.

The company is seeking loans totalling A$285m ($261m) to reduce the company’s debts and for “specific distributions to shareholders”, it said.

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