Kohlberg, Mubadala to acquire majority stake in PCI Pharma Services

Kohlberg & Company and Mubadala Investment have agreed to acquire a majority stake in drug development solutions provider PCI Pharma Services, a portfolio company of Partners Group, for an undisclosed price.

While Kohlberg is a New York-based private equity firm, Mubadala Investment is an Abu Dhabi-based sovereign investor.

Partners Group, which is a global private markets investment manager, is selling its majority equity stake in the drug development solutions provider on behalf of its clients and along with its investment partners Thomas H. Lee Partners and Frazier Healthcare Partners.

Upon completion of the transaction, Partners Group will hold on to a meaningful minority equity stake in PCI Pharma Services.

Salim Haffar – PCI Pharma Services CEO said: “Kohlberg brings considerable successful experience in the biopharmaceuticals and medical device areas, and I am thrilled to be continuing with them to accelerate the growth of our commercial, clinical trial services, and development manufacturing businesses under this new alliance.

“Both Kohlberg and Mubadala’s experience and track record in supporting successful management teams will make a great impact on PCI’s continued journey of transformation as we focus on building capabilities to support the future demands of our biopharmaceutical customers in our shared goal of bringing life changing therapies to patients worldwide.”

Based in Philadelphia, PCI Pharma Services is said to offer a variety of integrated pharma supply chain solutions from the earliest stages of drug development through to commercial launch. The company also delivers ongoing supply with global capabilities for drug development and manufacturing, clinical trials, and commercial packaging services.

PCI Pharma Service has 25 GMP facilities in six countries and has a workforce of around 4,000 people.

Chris Anderson – Partner of Kohlberg said: “We identified PCI through our Outsourced Pharmaceutical Services White Paper, and our larger industry practice in Pharmaceutical and Medical Products & Services, as a best-in-class company led by a premier management team.

“We are honored to have the opportunity to work with Salim and his team on their next phase of transformational growth and value creation.”

Last month, PCI Pharma Services announced plans to expand its global clinical trial services with a new clinical center of excellence (COE) at its Berlin site in Germany.