Genstar Capital Acquires PRA International - Private Equity Firm Leads Acquisition of Leading Clinical Research Organization
7/9/2001
Contact: Genstar CapitalAndrea Ginsberg(415) 664-4680aginsberg@gencap.comJuly 9, 2001 — Genstar Capital, L.P. (“Genstar”), a private equity firm specializing in equity investments structured as management buyouts or growth financings, today announced that, together with management, it has acquired PRA International. Wells Fargo Bank, Heller Healthcare Financial, Capital d’Amerique (CDPQ) and BNP Paribas provided the debt financing for the transaction. Jean-Pierre L. Conte, Richard F. Hoskins and Robert Weltman of Genstar will join PRA’s Board of Directors. Founded in 1976, PRA International is a leading international clinical research organization (CRO) with approximately $120 million in revenues and 1,200 employees. The company provides services on a contract basis to the pharmaceutical and biotechnology industries and is the seventh-largest clinical research organization in the world. PRA offers comprehensive services including the filing of Investigational New Drug (IND) and similar regulatory applications, management and implementation of Phase I through IV clinical trials, preparation and submission of New Drug Applications (NDAs), and post-marketing surveillance on an international basis. In the past two years, PRA has worked with all ten of the largest pharmaceutical companies, seven of the top ten biotechnology companies, and has conducted research in 25 countries. Prior to the acquisition, affiliates of The Carlyle Group were the principal stockholders of PRA. “We are proud to be taking a leading investment role in PRA International,” said J-P Conte, Genstar Managing Director. “As an active investor in life sciences, Genstar has been closely watching the clinical research organization industry. This is the right time for this sector, one that is experiencing rapid acceleration as a result of a growing pipeline of new drug candidates and increased outsourcing by pharmaceutical and biotech companies. New opportunities in the CRO industry, the strength and depth of PRA’s management team and the Company’s commitment to quality make PRA a promising investment.” Mr. Conte added, “This is truly an exciting time at Genstar. With the recent close of our third and largest fund to date, Genstar Capital Partners III, L.P., we are optimally positioned to execute on our proven investment strategy, cultivate new opportunities and continue to deliver superior returns to our investors.” “Partnering with Genstar will provide PRA with fresh insights on the life sciences industry, access to strategic opportunities and the capital necessary to take us to the next level,” said Earle Martin, Chairman and CEO of PRA International. “Over the last two years, the CRO industry has experienced tremendous change. The emergence of numerous compounds from biotechnology companies as well as consolidation among large pharmaceutical companies has opened new doors, leading to an increase in our pipeline and opportunities to play a more strategic role in the development of pharmaceutical products. With a solid strategic plan in place, one that emphasizes continued expansion, we are more committed than ever to growing PRA and continuing to provide our customers with high value services.” About Genstar Based in San Francisco, Genstar is a private-equity investment firm that makes leveraged investments in quality companies. Genstar works in partnership with management to create value over the long term. With more than $440 million of committed capital under management and significant experience operating and investing in businesses, Genstar brings a unique mix of experience to portfolio companies. For more information about Genstar, visit www.gencap.com. About PRA PRA’s corporate headquarters are located in McLean, Virginia, just outside of Washington, DC. Clinical trials and related services are conducted from five Trials Management Centers located in Charlottesville, Virginia; Lenexa, Kansas; Mannheim, Germany; Reading, England; and Eatontown, New Jersey. The company also operates satellite offices in San Francisco, California and Paris, France, a 56-bed inpatient Clinical Pharmacology Center in Lenexa, Kansas, and an International Data Processing Center in Swansea, Wales. For additional information about PRA International, visit www.prainternational.com.