Posts Tagged ‘private equity’

Pharmaceutical Product Development, Inc. (PPDI) soars on private equity buyout news

Monday, October 3rd, 2011

Shares of Pharmaceutical Product Development, Inc. (Nasdaq: PPDI) were up as much as 27 percent from Friday’s closing price in morning trading on Monday after it was announced that PPD entered into a definitive merger agreement under which it will be acquired by affiliates of The Carlyle Group and Hellman & Friedman in an all-cash transaction valued at $3.9 billion, after which PPD will be a private company, an October 3 press release stated.

Shares of PPDI touched a high of $32.63, up from Friday’s closing price of $25.66.

Under the terms of the merger agreement, Carlyle and Hellman & Friedman will acquire the outstanding common shares of PPD for $33.25 per share in cash. This represents a premium of 29.6 percent over PPD’s closing price on September 30, 2011.

“The sale of PPD to The Carlyle Group and Hellman & Friedman provides an attractive return for our shareholders, while also ensuring a secure foundation and commitment to investment, innovation and excellence for PPD clients and employees as the company builds on its 25-year history of success,” said Fred Eshelman, founder and executive chairman of Pharmaceutical Product Development, Inc. in an October 3 press release.

Pharmaceutical product Development, Inc. is a leading global contract research organization that provides drug discovery, development and lifecycle management services for clients and partners including pharmaceutical, biotechnology, medical device, academic and government organizations.

The transaction is currently expected to close in the fourth quarter of 2011. Following completion of the transaction, PPD will become a privately held company and its stock will no longer trade on Nasdaq. PPD noted that, in light of the proposed transaction, it will not host a conference call to discuss financial results for the third quarter of 2011.

Sterling Financial Corp. (STSA) – Buzz Stock of the Day

Monday, May 24th, 2010

Shares of Sterling Financial Corp. (Nasdaq: STSA) were up as much as 33 percent today after it was announced that private-firm, Warburg Pincus would invest $139 million to support the bank’s recapitalization plan.

If the deal goes through, Warburg Pincus would own about 20 percent of Sterling’s common stock. The investment would augment last month’s announcement that Thomas H. Lee Partners (THL) of Boston will invest $134.7 million in the struggling Spokane bank if certain conditions are met.

As part of the Warburg Pincus investment, Thomas H. Lee Partners agreed to adjust the size of its previously announced proposed investment to equal the Warburg Pincus investment. Upon the closing of the recapitalization transactions, the two firms would invest a total of $278 million combined, and would hold an ownership stake of about 40% of Sterling Financial.

“We are pleased to announce Warburg Pincus as an investor in Sterling,” said Sterling’s president and CEO, Greg Seibly. “Warburg Pincus is a highly successful bank sector investor that has long-standing and deep knowledge of our company.”

Sterling Financial Corporation of Spokane, Wash., is the bank holding company for Sterling Savings Bank, a commercial bank, and Golf Savings Bank, a savings bank focused on single-family mortgage originations.