New York-headquartered private equity investment group CCMP Capital will buy a majority stake in US CRO Medpace.
According to various reports CCMP will pay as much as $600m (€428m) for 80 per cent of the privately-owned Cincinnati, Ohio contract research organisation (CRO) with the management team retaining the remaining 20 per cent.
The prevailing wisdom is that the wave of consolidation sweeping the sector - INC’s bid for Kendle and CliniPace’s move for PFC Pharma Focus being the most recent examples - is attractive to investors seeking a lucrative exit strategy in a few years time.
Support for this idea came last week when inVentiv Health announced plans to buy PharmaNet from private equity firm JLL Partners, which had owned the CRO since 2009.
CCMP did not respond to Outsourcing-pharma.com’s request for more information about its motivation for the Medpace deal.
In a press statement Medpace CEO August Troendle, who will remain in his post when the acquisition is completed next month, said the deal will give the CRO the financial clout to enact its growth strategy.
“The transaction will provide resources to make the strategic long-term investments that are needed to advance our leadership position, grow the core the business and expand our global reach.”
The firm is also building a new 132,000 sq ft headquarters in Madisonville, Ohio near Cincinnati, which it said will create 760 new jobs when fully operational in 2014.