PA-PCI-PHARMA-SERVICES

PCI Pharma Services (“PCI” or “the Company”), a leading pharmaceutical and biopharmaceutical global supply chain solutions provider, and portfolio company of Partners Group, announced today the signing of a definitive agreement for the acquisition of a majority stake in the company by Kohlberg & Company, LLC (“Kohlberg”).

Kohlberg is a leading private equity firm headquartered in Mount Kisco, N.Y. with over 30 years of successful experience partnering with management and companies like PCI Pharma Services. Mubadala Investment Company (“Mubadala”), an Abu Dhabi-based sovereign investor, will also become a significant investor in PCI.

Partners Group, the global private markets investment manager, has agreed to the sale of its majority equity stake in PCI Pharma Services on behalf of its clients and alongside its investment partners Thomas H. Lee Partners and Frazier Healthcare Partners. Following the sale to private equity firm Kohlberg and Mubadala, Partners Group will retain a meaningful minority equity stake in the Company. The terms of the transaction are not disclosed.

Headquartered in Philadelphia, Pa., PCI Pharma Services is a recognized industry leader and trusted partner providing a broad range of integrated pharmaceutical supply chain solutions from the earliest stages of drug development through to commercial launch, and delivering ongoing supply with global capabilities for drug development and manufacturing, clinical trials services and commercial packaging services. PCI spans a global footprint of 25 GMP facilities across six countries and employs ~3,900 people worldwide.

“Our teams at PCI have embarked on a purposeful journey over recent years to transform the company by executing a successful growth strategy, providing customers with innovative and integrated supply chain solutions and delivering the industry-leading customer experience by differentiating through investment in global capabilities, operational excellence, technology and our biggest asset, our talented people,” said Salim Haffar, PCI’s CEO. “I am grateful for the support of our board and the director representatives from Partners Group, THL and Frazier.”

Haffar continues, “Kohlberg brings considerable successful experience in the biopharmaceuticals and medical device areas, and I am thrilled to be continuing with them to accelerate the growth of our commercial, clinical trial services, and development manufacturing businesses under this new alliance. Both Kohlberg and Mubadala’s experience and track record in supporting successful management teams will make a great impact on PCI’s continued journey of transformation as we focus on building capabilities to support the future demands of our biopharmaceutical customers in our shared goal of bringing life changing therapies to patients worldwide.”

"We identified PCI through our Outsourced Pharmaceutical Services White Paper, and our larger industry practice in Pharmaceutical and Medical Products & Services, as a best-in-class company led by a premier management team,” commented Chris Anderson, Partner of Kohlberg. “We are honored to have the opportunity to work with Salim and his team on their next phase of transformational growth and value creation."

Kohlberg and Mubadala plan to partner with PCI's management team, led by CEO Salim Haffar, to continue the Company's transformation journey by adding specific capabilities and geographies organically and inorganically to improve its customer service experience and enable its customers to bring life-changing biopharmaceutical therapies to market. Leveraging the global growth trends in biologics and specialized drug therapies, future capabilities include sterile fill finish of injectables, expanding high potent and specialized manufacturing and further geographic expansion into Asia and greater Europe.

“We are thrilled to be partnering with PCI's world class management team, and we believe the partnership of Kohlberg, Mubadala and Partners Group is an optimal combination to support management's acceleration of its growth and value creation pathways," said Matt Jennings, Operating Partner of Kohlberg and future Chairman of PCI. "Salim's inspirational leadership, clear vision for the future and focus on expanding customer experience gave us confidence in him, his management team and the long-term future potential for the PCI business.”

Camilla Macapili Languille, Head of Pharma & Medtech, Mubadala, said, “Outsourced pharmaceutical services has been a key investment theme for us over the past few years, and we are excited to be partnering with one of the global leaders in this industry. We have been particularly impressed by the quality and depth of PCI’s management team, as well as the company’s strong execution track record, impeccable values, and distinct vision for the long-term development of their business. We have strong conviction in the company’s growth trajectory and are committed to working with Kohlberg and Partners Group to ensure their long-term success.”

Remy Hauser, Managing Director and Head of Healthcare, Industry Value Creation, Partners Group, states, "We are extremely proud of our work with PCI Pharma Services. Though the last few months have been immensely challenging ones, the COVID-19 pandemic has demonstrated the essential nature of the services that PCI provides to the pharmaceutical and biotech industry. On more than one occasion, PCI was the critical link in the supply chain responsible for ensuring life changing therapy reached those in need."

Sujit John, Member of Management, Private Equity Directs Americas, Partners Group, adds, "We initially identified PCI as a prospective investment via our Thematic Sourcing strategy, based on the strong fundamentals supporting outsourced pharmaceutical services. During our ownership, we were able to add significant value to the business through a combination of operational improvements and bolt-on acquisitions. PCI has a strong growth trajectory ahead and we are excited to contribute to that through our continued investment in the Company."

Todd Abbrecht, Managing Director and Head of Private Equity at Thomas H. Lee Partners said, “Supporting Salim and his team’s efforts to drive efficiencies while pursuing organic and acquisitive growth initiatives has fulfilled a key part of our value creation strategy. PCI is well positioned to continue its history of outstanding customer service and profitable growth.”

About PCI Pharma Services

The global healthcare industry trusts PCI for the drug development solutions that increase their products’ speed to market and opportunities for commercial success. Only PCI brings the proven experience that comes with more than 50 successful product launches each year and over five decades in the healthcare services business. Leading technology and continued investment enable us to address global development needs throughout the product life cycle — from Phase I Clinical trials through commercialization and ongoing supply. Our clients view us as an extension of their business and a collaborative partner, with the shared goal of improving patients’ lives. For more information, please visit www.pciservices.com .

About Kohlberg & Company, LLC

Kohlberg & Company, LLC (“Kohlberg”) is a leading private equity firm headquartered in Mount Kisco, New York. Since its inception in 1987, Kohlberg has organized nine private equity funds, through which it has raised over $10 billion of committed equity capital. Over its 33-year history, Kohlberg has completed 81 platform investments and approximately 200 add-on acquisitions, with an aggregate transaction value in excess of $25 billion. For more information, please visit www.kohlberg.com .

About Mubadala Investment Company

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi.

Mubadala’s US $232 billion portfolio spans five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings across all asset classes. Mubadala has offices in Rio de Janeiro, Moscow, New York, San Francisco and London.

Mubadala is a trusted partner, an engaged shareholder and a responsible global company that is committed to world-class standards of governance.

About Partners Group

Partners Group is a leading global private markets investment manager. Since 1996, the firm has invested over USD 135 billion in private equity, private real estate, private debt and private infrastructure on behalf of its clients globally. Partners Group is a committed, responsible investor and aims to create broad stakeholder impact through its active ownership and development of growing businesses, attractive real estate and essential infrastructure. With over USD 96 billion in assets under management as of 30 June 2020, Partners Group serves a broad range of institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com

About Frazier Healthcare Partners

Founded in 1991, Frazier Healthcare Partners is a leading provider of private equity capital to healthcare companies. With more than $4.2 billion total capital raised, Frazier has invested in more than 170 healthcare companies ranging from company creation and venture capital to buyouts of profitable lower-middle market companies. Frazier has offices in Seattle, WA, and Menlo Park, CA, and invests broadly across the U.S., Canada and Europe. For more information about Frazier Healthcare Partners, please visit www.frazierhealthcare.com

About Thomas H. Lee Partners

THL invests in middle market growth companies, headquartered primarily in North America, exclusively in four sectors: Consumer, Financial Services, Healthcare and Technology & Business Solutions. We couple our deep sector expertise with dedicated internal operating resources to transform and build great companies of lasting value in partnership with management. Since 1974, we have raised more than $25 billion of equity capital, invested in over 150 companies and completed more than 400 add-on acquisitions representing an aggregate enterprise value at acquisition of over $200 billion. For more information on THL, please visit www.THL.com .

Jefferies LLC served as lead financial advisor to PCI and Morgan Stanley & Co LLC served as co-advisor.

Centerview Partners LLC served as financial advisor to the Kohlberg-Mubadala consortium.

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