INC Research acquires Kendle for $232 million
07-13-2011
by Kelsey Kaustinen  |  Email the author

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RALEIGH, N.C.—INC Research, LLC, a contract research organization privately held by Avista Capital Partners and Ontario Teachers' Pension Plan, has announced the acquisition of Kendle International Inc. Kendle was acquired in an all-cash transaction with a total equity value of about $232 million, or $15.25 per share. The two companies, once combined, will operate as INC Research, LLC, and will be led by James Ogle, Chief Executive Officer of INC Research. The other management roles will be filled by Jamie Macdonald as Chief Operating Officer; David Gill as Chief Financial Officer; John Potthoff, Ph.D., as President; Mark Roseman, DSc, as Executive Vice President of Business Development and Marketing; and Neil MacAllister as Executive Vice President of Corporate and Business Development and President of AVOS Consulting.
 
"Biopharmaceutical companies of all sizes are relying on outsourcing partners earlier in the clinical trials process," said Ogle in a press release. "This transaction has enhanced our value proposition to global drug developers and given us a broader range of local operations with global oversight, allowing us to maintain high standards and quality results."  
 
Kendle brings a great deal of experience to the deal, as a CRO offering a full range of Phase I to IV services and with experience in over 100 countries. The company describes its focus as being on "innovative solutions that reduce cycle times for our customers and accelerate the delivery of life-enhancing products to market for the benefit of patients worldwide." By acquiring Kendle, INC Research now has approximately 5,000 employees over six continents, further boosting it as one of the largest CROs.
 
This acquisition comes on the heels of INC Research's June 1 announcement of the acquisition of another CRO, Trident Clinical Research, now a wholly owned affiliate of INC Research with operations in Sydney, Melbourne, Auckland, Brisbane, Mumbai and Adelaide. According to INC Research, the acquisition of Kendle is the ninth successful acquisition for the company in 10 years.
 
A joint integration team has been set into motion by INC Research in order to fully integrate INC Research and Kendle's employees, services and customers. The team will also work to ensure continued delivery on all current trials and maintain INC Research's advisory services and therapeutic expertise.  
 
In a Q&A supplement for its customers, INC Research noted that "acquiring Kendle presented a unique opportunity to develop a new force in the industry by expanding our geographic size and scale—especially in Latin America and Asia, enhancing our therapeutic breadth and depth, and reaching new levels of operational efficiencies."
 
"INC Research and Kendle share a common culture around customer-centric, high-quality service delivery," INC Research told its customers.
 
The company also cited the recent trend of pharmas reducing how many CROs they work with, noting that "with the addition of Kendle, INC Research is now better positioned to participate in evolving drug development outsourcing models that require broader capabilities and critical mass. "  
 
INC Research is a CRO with strength in global clinical development programs and focused on therapeutics with expertise in several indications, including cardiovascular, immunology, oncology, pediatrics, women's health and central nervous system. The company is headquartered in Raleigh.  
 
Kendle brought on J.P. Morgan Securities LLC as financial advisor for the deal, and Keating, Muething & Klekamp PLL as legal advisor. INC Research brought Morgan Stanley & Co. Inc. on as its financial advisor and Weil, Gotshal & Manges LLP as legal advisor for the acquisition.
Code: E07131100

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