GIC affiliate snaps up minority stake in Pharmaceutical Product Development for $9.1b

Proceeds from the investment will be used for recapitalisation.

GIC affiliate and a subsidiary Abu Dhabi Investment Authority (ADIA) acquired a minority stake in Pharmaceutical Product Development, LLC (PPD) for $9.1b.

The pharmaceutical company announced that its existing owners, affiliates of Hellman & Friedman and affiliates of The Carlyle Group (Carlyle), have entered into definitive agreements to recapitalise PPD and expand the company’s ownership. GIC and ADIA are longtime investors in Carlyle and Hellman & Friedman and now will be direct investors in PPD.

Under the agreements, Hellman & Friedman will assume majority ownership and Carlyle will retain a substantial minority position in PPD, both investing substantial equity from new funds. Hellman & Friedman and Carlyle will maintain majority joint ownership of the company.

In connection with the transaction, PPD expects to raise approximately $550m through the issuance of new senior unsecured notes. The proceeds from the investments of Hellman & Friedman, Carlyle, ADIA and GIC and the issuance of the new notes will be used to finance the recapitalisation.