Advent Buys 50% Stake in Pharmaceutical Contractor InVentiv

  • Private equity deal values InVentiv at about $3.8 billion
  • Drug services company won’t pursue IPO following deal

Advent International Corp. will buy a 50 percent stake in InVentiv Health Inc. that will value the pharmaceutical services firm at $3.8 billion, making Advent a co-owner of the business with Thomas H. Lee Partners.

The two private equity firms said in a statement that they’ll be equal equity owners in InVentiv. InVentiv doesn’t plan to pursue an initial public offering at this time, the companies said. A private equity group led by Thomas H. Lee bought InVentiv in 2010 for about $1.1 billion.

Devin Broda, an outside spokesman for InVentiv Health with Sard Verbinnen & Co., declined to provide more details on the transaction.

InVentiv contracts with pharmaceutical companies to help develop drugs by running or staffing clinical trials, which can often involve dozens to hundreds of sites around the world. It also offers contract workers to help sell products after they’re approved. The industry increasingly relies on contract workers to scale up or scale down as it develops and launches new treatments, instead of keeping a standing army of researchers and marketers at the ready.

InVentiv has annual sales of about $2.2 billion, according to the statement. Its competitors include Parexel International Corp. and Quintiles Transnational Holdings Inc. Quintiles had an initial public offering in 2013 after being taken private in 2008 by private-equity firms including TPG Capital Management and Bain Capital.

Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. were financial advisers for InVentiv and Thomas H. Lee, and Weil, Gotshal & Manges LLP were legal advisers. Bank of America Corp.’s Merrill Lynch unit and Barclays Plc were financial advisers for Advent, and Kirkland & Ellis LLP were legal advisers.

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