December 2, 2009
Dow Jones LBO Wire – Healthcare
Looking to further expand globally, Cartesian Capital Group LLC’s pharmaceutical services platform ReSearch Pharmaceutical Services Inc. has deepened its footprint in Asia with the acquisition of Paramax International Inc., a Beijing-based contract research company.
RPS, based in Fort Washington, Pa., paid about $1.9 million in cash and stock for Paramax, according to a Securities and Exchange Commission filing.
Cartesian first invested in RPS at the end of 2007 in a growth equity deal, according to Cartesian Managing Partner Peter Yu. The firm has worked to aggressively expand the company’s global reach, completing deals for contract research organizations in France, Spain and Germany. Paramax is its fourth add-on deal.
The company had significant operations in the U.S. and Latin America, but the firm wanted it to go broader, Yu said.
“Our longer term perspective was that the world’s pharmaceutical companies had to have CRO capabilities in emerging markets,” Yu said. “If you look at the next 10 years of growth for these companies, they have to do few things at same time: increase their research development work, identifying new compounds, grow aggressively in emerging markets, and keep fixed costs in control. Those are all factors that favor growth for RPS.”
For the three months ended Sept. 30, RPS pulled in $57.3 million in revenue, compared with the $44 million for the year-earlier quarter. Net income rose to $994,033 from $748,239. The company was listed on the Alternative Investment Market of the London Stock Exchange until September.
RPS is a portfolio company of Pangaea One, which closed in 2006 at $1 billion.
RPS Chief Executive Dan Perlman was not immediately available to comment.
Reach Cartesian Capital at 212-461-6363.
http://www.rpsweb.com
Source: rpsweb.com · Read the original article
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