GIC affiliate, Abu Dhabi Investment Authority unit buy minority stake in PPD

AN affiliate of GIC, Singapore's sovereign wealth fund, and a subsidiary of the Abu Dhabi Investment Authority (ADIA) have bought a minority stake in Pharmaceutical Product Development, LLC (PPD), valuing the pharmaceutical company at more than US$9 billion.

PPD is a contract research organisation providing comprehensive, integrated drug development, laboratory and lifecycle management services.

The stake was bought from affiliates of Hellman & Friedman and affiliates of The Carlyle Group (Carlyle). Hellman & Friedman and Carlyle will maintain majority joint ownership of the company.

GIC and ADIA are long-time investors in Carlyle and Hellman & Friedman and now will be direct investors in PPD.

PPD expects to raise approximately US$550 million through the issuance of new senior unsecured holdco 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.

The transaction is expected to close in the second quarter of 2017.

Goldman Sachs, JP Morgan Securities LLC, and Centerview Partners acted as financial advisers to PPD. Latham & Watkins LLP and Simpson Thacher & Bartlett LLP acted as legal advisers to PPD.