HgCapital Trust plc Regulatory News (HGT)

19 Jun 2006 14:39

HG Capital Trust PLC19 June 2006 The following is the text of a press release issued by HgCapital, which managesthe investment portfolio of HgCapital Trust plc alongside those of otherinstitutional clients. On completion of the sale of Pharma Bio Research BV, HgCapital Trust plc, alisted investment trust giving investors the opportunity to participate in allof HgCapital's investments, will realise a total of €8 million. HgCapital sells Pharma Bio-Research BV for €85 million London, 19 June 2006. HgCapital, the European sector-focused private equityinvestor, today announces the sale of Pharma Bio-Research BV (PBR), a contractresearch organisation focused on managing early-phase clinical trials of newdrugs on behalf of global pharmaceutical and biotech companies. HgCapital hassold PBR to PRA International (PRA), the US-listed global clinical researchorganisation (NASDAQ: PRAI), for a consideration of €85 million. The transactionis expected to close in early July. The sale of PBR is HgCapital Healthcare team's fourth transaction in under18months totalling almost €1 billion, highlighting the firm's experience in thesector. It follows the recent €450 million acquisition of Paragon Healthcare,the leading provider of speciality community-based residential care for peoplewith learning disabilities. In addition Clinphone, another HgCapital investment,has also announced its intention to float on the London Stock Exchange. PBR, which is one of three portfolio investments in the Benelux region and acore investment geography for HgCapital, is based in Zuidlaren and Assen in theNetherlands. It operates two clinical facilities in northern Holland, includingone at the world-renowned Groningen University Hospital. HgCapital invested inPBR in December 2002. Since then, HgCapital has worked with PBR management tobroaden the company's client base, build its presence in the USA and developstrong capabilities in proof of concept clinical studies. The sale of PBR will realise approximately €45 million for clients, of which 25%will be received as equity in PRA. Lindsay Dibden, Partner of HgCapital and Head of the Healthcare team commented:"We are very pleased to be able to continue our investment exposure in thisgrowing area of outsourced pharmaceutical services. Our original investment inPBR took place at a time when the flow of new compounds into clinical testingwas beginning to grow rapidly. We now see an increasing number of opportunitiesfor full end-to-end clinical research organisations such as PRA to capture thevalue of those compounds moving into later phase trials. The combination ofservices offered by PBR and PRA points to an exciting future." Dr Willem Jan Drijhout, Chief Scientific Officer of PBR added: "Establishingintegrated Phase I/IIa services in both the United States and in Europe is animportant strategic move to support our biotech and pharmaceutical clients. Wecan begin to realize the synergies between PRA's late stage clinical work andour bioanalytical laboratory for additional growth potential. The two companiesshare similar values, such as a focus on quality, a commitment to science, opencommunication and dedicated professionals doing the work. We believe that thiscultural fit will enable a smooth integration, creating an even more rewardingenvironment for our employees." HgCapital was advised by William Blair International Limited (corporate finance)and Lovells (legal). * HgCapital's recent transactions in the Healthcare sector include: April 2006: €450 million MBO of Paragon Healthcare June 2005: Sale of Tunstall for €315 million March 2005: €102 million recapitalisation of Castlebeck ** HgCapital's recent transactions in the Benelux region include: December 2004: Investment in Doc Morris June 2005: MBO of SiTel Semiconductor Contacts: HgCapitalLindsay Dibden +44 (0)20 7089 7980 MaitlandPeter Ogden +44 (0)20 7379 5151 This information is provided by RNS The company news service from the London Stock Exchange