Global global private markets investment manager Partners Group has agreed to acquire Frazier Healthcare Partners’ portfolio business PCI Pharma Services for around $1bn, including debt, AltAssets understands.
The Philadelphia-based company, which was acquired by Frazier in 2012, provides drug development, manufacturing, clinical trial, commercial packaging and analytical services to the healthcare industry. In 2015, PCI generated revenue of $457m.
Frazier will keep a minority stake alongside new investor Partners Group, which intends to focus on further expanding the business organically and through add-on acquisitions.
Joel Schwartz, managing director and head of private equity americas at Partners Group, commented, “Given the supportive market environment and PCI’s longstanding role as a trusted partner to leading players across the global healthcare industry, our view is that the company has all the ingredients in place to achieve further solid growth.”
PCI was created when Frazier acquired the packaging operations of Blackstone Group’s Catalent Pharma Solutions four years ago.
In April 2013, the private equity firm bought out US pharmaceutical services business AndersonBrecon and merged it with PCI. A year later, Frazier picked up Britain’s Penn Pharmaceutical Services.
Commenting on the current transaction, Nathan Every, general partner at Frazier, said, “We are excited to continue our partnership with PCI and its industry-leading management team, and welcome Partners Group to lead the next phase of growth for the company.”
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