Crescent buys Australian CRO business
Crescent Capital Partners has acquired Australia-based clinical research organization (CRO) Nucleus Network from The Baker Institute, an independent research institute that focuses on heart disease and diabetes.
The size of the transaction was not disclosed. Crescent is currently deploying its fifth fund, which closed at A$675 million ($521 million) in 2014 and invests in middle-market businesses with enterprise values of A$50 million to A$300 million.
Established in 2003 with grants from the Victoria state government, Nucleus is Australia’s largest phase one clinical trials facility. Based at an 80-bed unit in Melbourne’s Alfred Hospital, it conducts 50 clinical trials a year – about half of which are first-in-human studies – for international pharmaceutical and biopharmaceutical companies.
The Baker Institute moved to sell the asset after deciding it had outgrown the remit of the institute, which is limited to cardiovascular and diabetes research. The institute has the option to maintain a 20% interest in Nucleus. It credited Nucleus with having developed a strong management team and financial profile and a diverse customer base.
Crescent said in a statement that the trials conducted by Nucleus provide a critical step in ensuring the safety and efficacy of new drugs and devices headed for the marketplace. It plans to support expansion of the business.
The private equity firm is a particularly active investor in healthcare, financial services, branded and industrial businesses. Previous healthcare deals include National Dental Centre, skin cancer clinic owner Sun Doctors, MyHealth Medical Centres, pathology provider Australian Clinical Labs, National Hearing Care, and LifeHealthcare.
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