KKR & Co acquires clinical research group PRA for a reported $1.3 bn

US private equity firm KKR & Co yesterday agreed to buy clinical research group PRA International from Genstar Capital, for a reported $1.3 billion.

KKR did not disclose the financial terms of the deal, but citing a person familiar with the matter, Reuters reported that the agreed price was around $1.3 billion.

Genstar had acquired PRA in 2007 from Carlyle Group for $797 million and had failed to sell the company in 2011. It filed for an IPO for PRA in May, but KKR and other PE firms like Warburg Pincus and Cinven showed interest in buying the research group.

Founded in 1976, North Carolina-based PRA is a leading international contract research organizations (CRO) with over 5,300 employees offering services in over 80 countries.

The company provides services on a contract basis to the pharmaceutical and biotechnology industries. PRA offers comprehensive services including the filing of Investigational New Drug and similar regulatory applications, management and implementation of Phase I through IV clinical trials, preparation and submission of New Drug Applications, and post-marketing surveillance on an international basis.

Colin Shannon, president and CEO of PRA, said, ''Targeted investments, particularly in Eastern Europe and Asia, expanded our geographic coverage and, as a result of this strong infrastructure, we have a growing list of new business opportunities. We have been very fortunate with our partnership with Genstar and believe our company is positioned for continued growth as a KKR portfolio company.''

''This is an excellent outcome for our investors, PRA and their clients and, importantly, the company continues to have a strong partner in KKR. The PRA leadership team under Colin Shannon has delivered over 100% of what they committed to through a tough economic period,'' said, Jean-Pierre Conte, chairman and managing director of Genstar Capital.