Cinven completes acquisition and financing of Medpace
European private equity firm Cinven today announces the completion of its acquisition of Medpace, Inc. ('Medpace' or 'the Group'), a leading contract research organisation, for a total consideration of US$915 million.
Cinven has also completed a successful financing of Medpace comprising a covenant-light all first lien loan structure. The Group attracted strong investor demand in the debt syndication due to its established track record of financial performance, outstanding cash conversion, strong management team and attractive positioning for future growth. In 2013, Medpace generated an adjusted EBITDA of US$94 million.
Increased R&D expenditure by the pharma and biotech industry - due to the growing number and complexity of clinical trials - is expected to fuel strong growth in the CRO industry. Medpace focuses on smaller pharma and biotech customers, where the outlook for R&D expenditure is most positive.
Jefferies, Barclays, Credit Suisse, UBS and Wells Fargo arranged the financing.