CCMP inks $500m healthcare deal

The firm has purchased an 80% stake in clinical research specialist Medpace, whose management team will own the remaining 20 percent following the close of the transaction.

CCMP Capital Advisors has acquired an 80 percent stake in clinical research organisation Medpace.

Financial details were not disclosed, but a source familiar with the transaction told Private Equity International the total value of the deal was approximately $500 million. Medpace provides development services for drug, biologic and device programs. The deal is expected to close by the end of June, after which the Medpace management team will own a 20 percent equity share in the company.

“Medpace is well positioned to benefit from the continued growth of pharma and biotech companies seeking drug development partnerships with clinical research specialists,” a CCMP spokesperson wrote in an email to PEI.

CCMP invested in Medpace from its CCMP Capital Investors II fund that closed on  $3.4 billion in 2007. Other healthcare investments in CCMP’s portfolio include Warner Chilcott, a specialty pharmaceutical company focused on the women's healthcare, gastroenterology, dermatology and urology segments of the North American and Western European pharmaceuticals markets.

In April, CCMP hired former chief financial officer of Gucci Group Robert Singer as an executive advisor to focus on investment opportunities in the consumer and retail sectors in Europe, where CCMP is expanding its investment activities.

CCMP established itself as an independent firm in 2006. The firm's investment professionals continue to manage the private equity portfolio of J.P. Morgan Partners, and have invested over $13 billion in buyout and growth equity since 1984.