Pamplona Capital to take Parexel private in $5B cash deal

Cornelia Mascio
Giugno 20, 2017

After growing rumors this week, Parexel has become the latest CRO to be bought up as the industry continues its M&A bonanza.

The private equity fund manager said Tuesday that it will pay $88.10 for each share, which represents a almost 28 percent premium to the company's stock price in early May before speculation about the deal first began to rise.

The purchase price represents a 27.9% premium to Parexel's unaffected closing stock price on May 5, 2017, the last trading day before news of the auction broke in the media; a 38.5% premium 30-day volume weighted average closing price up to that date; and a 23.3% premium to the Company's undisturbed 52-week high.

Its shares shot up premarket by 8% this morning, to over $90 a share.

The deal will be announced later on Tuesday, the source said.

"As our results over the past year show, the market for biopharmaceutical services is evolving", said Parexel chairman and CEO Josef von Rickenbach, in a statement.

He added: "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 commercialization 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".

Up to Monday's close, shares of Parexel had risen almost 22 percent since reports in early May that the company was exploring a sale. Parexel had net debt of $428 million at the end of its third quarter, which ended in March.

Pamplona, a 12-year old private-equity firm, has bases in London and NY and has raised five funds with over €7 billion ($7.8 billion) of capital commitments, with an eye to healthcare-services companies.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE