GUERNSEY: Partners Group, the Investment Manager of Princess Private Equity Holding Limited, has agreed the sale of a majority equity stake in PCI Pharma Services on behalf of its clients and alongside its investment partners Thomas H. Lee Partners and Frazier Healthcare Partners.
Following the sale to private equity firm Kohlberg & Company and Abu Dhabi-based sovereign investor Mubadala Investment Company, Princess, alongside other Partners Group-managed funds, will retain a meaningful minority equity stake in the Company. The terms of the transaction were not disclosed.
The transaction values Princess’ stake in PCI at approximately USD 50.8 million. This compares to a carrying value of USD 41.3 million (EUR 36.8 million) at 30 June 2020.
PCI, which is headquartered in Philadelphia, PA, is a global provider of outsourced pharmaceutical supply chain solutions supporting biotechnology and pharmaceutical companies throughout the various stages of drug development and commercialization. Partners Group acquired a majority stake in PCI in June 2016, on behalf of its clients.
During the last four years, Partners Group’s investment and industry value creation teams have worked alongside the Company’s management team to further establish PCI as a strategic partner to the pharmaceutical industry, by expanding in high-growth, high-value capabilities and services categories such as clinical trial services and complex molecule and biologics commercial packaging capabilities. The Board-led value creation strategy also included a focus on operational excellence and digital innovation, culminating in PCI launching a first-of-its-kind digital customer portal. Under Partners Group’s ownership, PCI’s EBITDA increased by 15.6% CAGR.
Partners Group also led a talent transformation, appointing a new management team with a clear vision for the future of the business, and implemented numerous sustainability initiatives, such as establishing best-practice health and safety standards across PCI’s global operations. During the COVID-19 global health crisis, PCI proved itself as an essential partner in the pharmaceutical supply chain, responding with a high degree of flexibility to address urgent customer needs and supporting its pharmaceutical and biotech customers across drug development and commercialization to address the health crisis.
Remy Hauser, Managing Director and Head of Healthcare, Industry Value Creation, Partners Group, states: “We are extremely proud of our work with PCI Pharma Services. Though the last few months have been immensely challenging ones, the COVID-19 pandemic has demonstrated the essential nature of the services that PCI provides to the pharmaceutical and biotech industry. On more than one occasion, PCI was the critical link in the supply chain responsible for ensuring life-saving medicine reached those in need.”
Salim Haffar, Chief Executive Officer, PCI Pharma Services, adds: “It has been a pleasure working with Partners Group to cement PCI’s leading position in the outsourced pharmaceutical services sector. The Partners Group team has offered substantial operational value during the investment period and has been a true partner throughout the COVID-19 pandemic, providing significant additional expertise and resources. With Partners Group’s help, we are proud that PCI has been able to contribute meaningfully to the global response to this virus.”
Sujit John, Member of Management, Private Equity Directs Americas, Partners Group, adds: “We initially identified PCI as a prospective investment via our Thematic Sourcing strategy, based on the strong fundamentals supporting outsourced pharmaceutical services. During our ownership, we were able to add significant value to the business through a combination of operational improvements and bolt-on acquisitions. PCI has a strong growth trajectory ahead and we are excited to contribute to that through our continued investment in the Company.”
Jefferies LLC served as lead financial advisor to PCI and Morgan Stanley & Co LLC served as co-advisor. Goodwin Procter LLP served as legal counsel.
Princess is an investment holding company founded in 1999 and domiciled in Guernsey. It invests, inter alia, in private equity and private debt investments. Princess is managed in its investment activities by Partners Group, a global private markets investment management firm with USD 96 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. Princess aims to provide shareholders with long-term capital growth and an attractive dividend yield.
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