PE-backed Eversana nears deal for Intouch, OEP reaps 5x its money on PS Logistics

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The Wire

Oct. 13, 2021

PE-backed Eversana nears deal for Intouch; Kohlberg, Partners-backed PCI Pharma values LSNE at $1.5bn; OEP generates 5x return on PS Logistics

Good morning!

The pandemic has cast a light on the entire supply chain and various processes that help bring new therapies from manufacturing to commercialization, and then help them succeed. The ways in which investors are riding this theme vary, particularly as the needs of drugmakers constantly evolve.

Today I’ve got the deets on two examples of note, starting with a sizable bet made by commercial services consolidator Eversana, a portfolio company of Water Street Healthcare Partners and JLL Partners. The PE-backed strategic buyer won the sale process for Intouch Group, a full-service network agency helping pharmaceutical companies elevate their brands, four sources familiar with the matter told PE Hub. The anticipated deal is expected to value Intouch at at least $950 million, some of the people said.

Elsewhere, I've learned that PE-backed PCI Pharma Services’ acquisition of Permira’s LSNE commanded a $1.5 billion valuation, which translates to nearly 40x the asset’s $38 million in trailing 12 month EBITDA as of June 2021. For PCI – whose majority owner is Kohlberg & Co, followed by Partners Group and Mubadala Investment – the acquisition is viewed as a highly strategic and intentional move.

Finally, one PE firm reapin' in the dough this year is One Equity Partners. The firm generated 5x its money on the sale of PS Logistics after scaling the company rapidly through an even split of organic and M&A growth, a source familiar with the deal told PE Hub. OEP has had an eventful year with 13 partial or full exits in the past 12 months, returning approximately $2.6 billion to investors, according to sources familiar with the deals. Check out Aaron Weitzman's full report on PE Hub.

That’s it for me! Have a great rest of your day. Hit me up at [email protected] with any good tips, gossip or just to say hello. Don’t forget to use our anonymous tip box on PE Hub or Buyouts.

Read the full wire commentary on PE Hub...

Also of note (may require subscriptions)

Tension: Expenses are increasingly becoming a source of tension in the LP/GP relationship as managers shift more of the burden of paying for firm operations away from the management fee directly on to fund investors, according to a new ILPA survey. This at a time when the SEC is considering stricter rules around GP fee and expense disclosure that some LPs believe are needed to level the playing field so fund investors of all sizes can get the financial information they need. Read more on Buyouts.

Forging ties: WSJ Pro writes thatThe New Mexico Educational Retirement Board is based far from the private-equity industry’s major investment hubs, but the $16.1 billion pension manager is building tight relationships with managers to get closer to investment opportunities. Read it here.