TPG, Bain Said to Be Interviewing Banks to Handle Quintiles IPO

TPG Capital and Bain Capital LLC are interviewing banks to handle the initial public offering for Quintiles Transnational Corp., the biggest provider of testing services to drugmakers, said three people with knowledge of the matter.

TPG and Bain have interviewed several banks in recent weeks and may name advisers soon, said the people, who asked not to be named as the process is private. The company is aiming to go public later this year, according to one of the people. In September, people familiar with the matter said the company may file for the IPO in the next 18 months.

Quintiles’s owners are going ahead with IPO plans as the Standard & Poor’s 500 Index trades at its highest level in five years. So far this year, private-equity-backed companies have performed beyond expectations. Norwegian Cruise Line Holdings Ltd. (NCLH), owned by Apollo Global Management LLC and TPG, priced its offering above the proposed range last week, and Bain-owned Bright Horizons Family Solutions Inc. did the same in its IPO, priced last night.

“Quintiles routinely evaluates its capital strategy, and it is our policy not to comment on these matters,” said Phil Bridges, a spokesman for Quintiles. Representatives for TPG and Boston-based Bain declined to comment.

A group of private-equity firms including Fort Worth, Texas-based TPG and Bain bought Quintiles in 2008 in a deal that valued the Durham, North Carolina-based company at about $3.8 billion, a person familiar with the matter said last year.

Quintiles Growth

Quintiles is among the contract-research organizations whose revenue growth has picked up as drugmakers outsource trials and testing, Moody’s Investors Service said in a Sept. 12 research note. The company hired new Chief Executive Officer Tom Pike in April and has bought up smaller competitors.

Two of Quintiles’s biggest competitors by sales are inVentiv Health Inc. and Catalent Pharma Solutions Inc., according to Moody’s, and both are closely held by private- equity firms. Blackstone Group LP acquired Catalent from Cardinal Health Inc. in 2007 for $3.3 billion, according to data compiled by Bloomberg. Thomas H. Lee Partners LP bought inVentiv in 2010 for $1.09 billion.

To contact the reporters on this story: Jeffrey McCracken in New York at jmccracken3@bloomberg.net; Drew Armstrong in New York at darmstrong17@bloomberg.net; Cristina Alesci in New York at calesci2@bloomberg.net

To contact the editors responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net; Reg Gale at rgale5@bloomberg.net

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