JLL To Acquire PharmaNet

JLL Partners will purchase PharmaNet Development Group, a provider of clinical development services, for $250 million. PharmaNet has approximately $144 million in outstanding convertible notes, so the net value of the company is $100 million. JLL will make a tender offer of $5 per outstanding share in the company. PharmaNet’s board has approved the agreement and will recommend that  shareholders go along with the tender offer. The transaction is expected to close by the end of 1Q09.

“The board of directors and I are very pleased to have a partner in JLL that recognizes the substantial value we have built in the PharmaNet Development Group franchise,” said Jeffrey P. McMullen, president and chief executive officer, PharmaNet Development Group. “We believe this transaction provides meaningful value to our stockholders while providing the solution to address the outstanding convertible notes.”

“PharmaNet Development Group is well-positioned as a leading provider of outsourced clinical development services with a global infrastructure and an excellent reputation,” said Ramsey Frank, managing director of JLL. “We look forward to working with the management team to enhance the company’s growth prospects and expand its portfolio of services.”

JLL is also an investor in Patheon. In January 2009, Patheon announced that JLL may be planning an unsolicited bid to take that company private.