PRA and RPS to Join and Create Leading CRO with Expanded Service Offerings and Capabilities

KKR, a leading global investment firm, has announced the signing of a definitive agreement to acquire ReSearch Pharmaceutical Services Inc. (“RPS”), a leading global contract research organization (CRO), from Warburg Pincus. This follows an announcement on June 24, 2013 in which KKR announced the acquisition of another leading CRO, PRA International (“PRA”). Terms of the transaction were not disclosed.

Upon close of both of the transactions, PRA and RPS will merge, with PRA Chief Executive Officer Colin Shannon leading the combined enterprise. RPS will continue to operate independently as the newly formed Strategic Solutions Division of PRA under the continued leadership of RPS President Harris Koffer and Executive Vice President Samir Shah. As part of the transaction, RPS Chief Executive Officer Dan Perlman is leaving RPS to pursue other interests outside the CRO industry.

RPS is a leading provider of outsourced clinical development services and is known for pioneering the Embedded model of functional clinical development outsourcing. Founded in 1998, RPS is one of the fastest growing CROs with more than 4,000 employees located in over 64 countries.

Harris Koffer, President of RPS, stated: “This transaction represents the next step in the evolution of RPS and its Embedded service model. I can think of no better partner for RPS than PRA and am excited about the opportunities going forward for the clients and employees of RPS.”

“RPS will continue to focus on providing its unique Embedded model as well as new innovative strategic solutions,” said Samir Shah, Executive Vice President of RPS. “As a division of PRA, we will continue to operate exactly as we do today, which should enable a seamless integration with absolutely no disruption for our clients and business as usual for our employees.”

Colin Shannon, President and CEO of PRA, stated: “We are excited about the potential to deliver even greater value to our clients through this combination. By bringing together PRA and RPS, we will be able to offer a more comprehensive range of services across all segments of the biopharmaceutical industry through our expanded capabilities, therapeutic expertise, and greater geographic presence.”

“This merger brings together two highly complementary companies with PRA as a leader in traditional programmatic outsourced clinical development and RPS as a pioneer of the innovative Embedded clinical development model,” said Jim Momtazee, Member of KKR and Head of its Health Care investing team. “Together, they will become an even stronger organization with significant opportunities for continued growth and innovation with a focus on providing high-quality service to clients and attractive career opportunities for employees.”

The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the third quarter of 2013.

Citigroup acted as exclusive financial advisor and Kirkland & Ellis LLP acted as legal advisor to RPS. Credit Suisse, Jefferies LLC, and UBS Investment Bank served as financial advisors to KKR. Simpson Thacher & Bartlett LLP served as legal counsel to KKR. Fully committed debt financing will be provided by Credit Suisse, Jefferies, UBS Investment Bank, Citigroup, and KKR Capital Markets.