Hg Capital completes Dutch deal

The European private equity firm has agreed to pay E90m for Dutch research firm Pharma Bio-Research.

(PrivateEquityCentral.net) UK and Germany-based private equity firm Hg Capital has acquired Dutch contract research company Pharma Bio-Research in a E90m transaction. Terms of the deal were not disclosed.


Pharma Bio-Research operates three clinical facilities in Holland. The company conducts early-phase trials for pharmaceutical and biotechnology firms. The company has revenues of E40m per year.


“The provision of outsourcing services to the pharmaceutical industry is one of the key areas of investment focus for Hg Capital’s investment team,” Lindsay Dibden, a director at Hg Capital, said in the statement. “PBR fits our investment philosophy perfectly; it is well positioned in a high-growth niche of pharmaceutical outsourcing services, has a strong reputation in its industry and has built an exceptional track record under its current management.”


Last month, Hg Capital agreed to acquire the FTE brake and clutch product division of Ohio-based auto parts manufacturer Dana Corp. for an undisclosed amount. FTE manufactures clutch and brake systems for most U.S. and European automobile manufacturers. The company, based in Germany, has five manufacturing plants, 2,800 employees, and expects revenue of E280m this year.


In July, Hg Capital acquired Castlebeck Care, a specialist provider of residential healthcare for adults with learning difficulties, from UK private equity firm 3i. 3i originally invested £5m in the company in 1998. In March, the firm completed the sale of PII Group, an oil and gas pipeline integrity services and monitoring company, to GE Power Systems for £310m.


Hg Capital has funds in excess of E1b under management, and invests in companies with enterprise values of between E15m and E400m, committing a minimum of E5m to any one transaction in the business services, healthcare, information technology and media sectors. In addition, a leveraged buyout team invests in other industry sectors, in businesses with minimum enterprise values of E50m. The firm is in the process of raising its MUST 4 European fund, which has a target of E670m. The firm is led by Ian Armitage. The firm has offices in London and Frankfurt.