Just weeks after putting itself up for sale, CRO PharmaNet has agreed to merge with affiliates of private equity group JLL Partners. JLL will pay $5 a share for all outstanding shares of PharmaNet, which values the company's stock at approximately $100 million. PharmaNet put itself up for sale in December after a number of clients canceled or delayed their planned trials, cutting into the company's profits. As a result, its stock dropped dramatically over the course of 2008, from a high of $40 to under $1. JLL's offer per share is more than five times PharmaNet's closing price on Monday.
JLL will acquire PharmaNet in a two-step transaction. The first will consist of a cash tender offer for all outstanding shares of the company's stock for $5.00 per share in cash. In the second step, the tender offer will be followed by a merger in which any outstanding shares of PharmaNet common stock will be converted into the right to receive the same cash price per share paid in the tender offer. The deal is expected to be completed by the first quarter of 2009.
"PharmaNet Development Group is well-positioned as a leading provider of outsourced clinical development services with a global infrastructure and an excellent reputation," said Ramsey Frank, Managing Director of JLL. "We look forward to working with the management team to enhance the Company's growth prospects and expand its portfolio of services."
- here's PharmaNet's release