Dec 28 2010
ReSearch Pharmaceutical Services, Inc. (RPS) announced today it has entered into an agreement to sell the company to affiliates of Warburg Pincus, LLC, the global private equity firm, in an all cash transaction valued at $6.10 per share. The Board of Directors of RPS unanimously approved the acquisition agreement and recommended that RPS shareholders approve the transaction. It is presently anticipated that closing of the transaction will occur in February 2011.
RPS is a next generation CRO that provides comprehensive global Phase 1-4 clinical development solutions to the pharmaceutical, biotechnology and medical device industries. With its experienced clinical research operations infrastructure and the industry's largest resourcing engines, RPS is uniquely positioned to offer clients a broad spectrum of outsourcing solutions ranging from globally embedded functional and cross-functional solutions to enhanced global full-service solutions.
"With the rapid organic expansion of RPS, it is important that we look to the future growth of our company and further leverage the unique business model we bring to the biopharmaceutical industry, fortifying our financial structure and industry expertise to successfully execute our model and continue to expand our capabilities. In Warburg Pincus we have found a partner with both the financial strength and relevant industry experience to enable us to accelerate the execution of our growth strategy," said Daniel M. Perlman, Chairman and CEO of RPS. "This partnership emphasizes our commitment to our employees and clients to continue to deliver innovative global business solutions encompassing world class quality with significant cost savings," Perlman added.
"We are delighted to partner with Dan Perlman and the management team at RPS," said Jonathan S. Leff, Managing Director, Warburg Pincus. "Dan and his team have built and grown the company based on a pioneering vision and strategy. The company's unique integrated outsourcing model has attracted many of the world's leading pharmaceutical and biotechnology companies as customers, by delivering cost savings and enhanced flexibility while allowing customers to maintain control of their clinical trials."
RPS intends to continue advancing its current strategy under the leadership of its existing management team. In addition, the company, together with its new financial partner Warburg Pincus, will look for opportunities to accelerate its growth through the development of enhanced service offerings and expanded international capabilities.
Jefferies & Company Inc. is acting as exclusive financial advisor and Drinker Biddle & Reath LLP is acting as legal advisor to RPS.
Kirkland & Ellis LLP is acting as legal advisor to Warburg Pincus.
The transaction is subject to various closing conditions, including the filing with the Securities and Exchange Commission (SEC) of an Information Statement on Schedule 14C and the distribution of the Information Statement to all of RPS's stockholders. Please refer to RPS's Current Report on Form 8-K to be filed with the SEC for information about the transaction.
Source:
ReSearch Pharmaceutical Services, Inc.
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