PCI’s previous owner, Frazier Healthcare Partners, who acquired PCI in 2012, will retain a minority investment in the company. Other terms of the transaction have not been disclosed.
However, Partners Group has said it plans to work with PCI's management team to add more specialized offerings to the product range and expand the company both organically and through additional acquisitions.
M&A activity in the market has been ubiquitous – Frazier also acquired AndersonBrecon in 2013 and Tredegar a year later. Additionally, PCI bought packaging and distribution firm Biotec Services International, last year, citing cold chain services demand.
"Outsourced pharmaceutical services is a segment we like a lot, due to the trend towards outsourcing on the part of the pharma majors. We think the industry will continue to grow and in fact looked at several companies in this space before landing on PCI,” Joel Schwarz, Managing Director and Head Private Equity Americas, Partners Group, told Outsourcing-Pharma.com.
Schwarz added that the plan is very much focused on growth and that there is more opportunity to consolidate through acquisitions, as the market remains quite fragmented.
“We also see organic growth potential in all three of the company's major business lines – packaging, drug development and manufacturing, and clinical services – but especially in the latter two where PCI is relatively new to the market,” said Schwarz. “We'll work closely with management on a series of initiatives to increase PCI's market share, while at the same time ensuring that the company has the internal systems and processes in place to be able to support that growth."
Rumors that PCI was looking for a buyer date back to March. As Outsourcing-Pharma.com previously reported, the buyout could have cost Partners Group as much as $1bn.
“The pharmaceutical and biotech industry is experiencing strong long term growth and strategic outsourcing continues to rise in this sector," Bill Mitchell, President and CEO, PCI Services, told us. "The investment from Partners Group will help continue to provide the support needed as PCI further invests in the expansion of its services to meet evolving client needs. With the acquisition by Partners Group we remain focused on enabling our pharmaceutical clients to deliver lifesaving medicines to patients around the world.”