Warburg sells pharmaceutical company to KKR

The exit of ReSearch Pharmaceutical Services marks the second time Warburg has sold a portfolio company to KKR this year, following the sale of tire maker Alliance Tire Group in April.

Warburg Pincus will sell pharmaceutical company ReSearch Pharmaceutical Services to Kohlberg Kravis Roberts for an undisclosed sum. Warburg declined to disclose a return multiple for the exit.   

ReSearch provides outsourced clinical research services to pharmaceutical and biotechnology companies. Warburg acquired the company in 2011, investing from its $15 billion Fund X. The transaction is expected to close in the third quarter of 2013.

KKR plans to merge the business with clinical research group PRA International, which it acquired in June for a reported $1.3 billion. 

“This merger brings together two highly complementary companies,” Jim Momtazee head of KKR’s healthcare investing team, said in a statement. 

The deal marks the second time KKR has purchased a portfolio company from Warburg this year, following the purchase of tire maker Alliance Tire Group from Warburg in April. The exit generated close to a 4x return for Warburg, an industry source told Private Equity International in a previous interview. 

Warburg has had an active 2013 on the exit and fundraising front.  In May, the firm sold eye care business Bausch & Lomb to Canada’s Valeant Pharmaceuticals for $8.7 billion and held a final close for its Fund XI on $11.2 billion, marking one of the largest buyout funds to close since the financial crisis of 2008.