Raymond Hill has stepped down as CEO of PPD, less than three months after taking the top post at the U.S.-based global CRO, according to a report from PharmaTimes. The announcement followed last week’s completion of PPD’s acquisition by affiliates of global investment firms The Carlyle Group and Hellman & Friedman and the company officially being taken private.
Hill’s resignation took effect Dec. 12. According to PharmaTimes, PPD said its new board of directors will be hiring a CEO to replace Hill, and in the interim four members of PPD’s senior leadership team will serve on an executive committee responsible for day-to-day management and operation.
PPD founder and leader for more than 25 years Dr. Fred Eshelman has agreed to serve as a senior adviser to the new board of directors and executive management team in 2012. Eshelman had been filling in as executive chairman at PPD before Hill joined the company from IMS Health in September, following CEO David Grange’s retirement in May.
“We do not anticipate other major changes in the day-to-day operations of the business, and PPD’s strategy and commitment to our clients and employees will not change,” Ned Glascock, associate director of corporate communications, told PharmaTimes.
According to PPD, the all-cash transaction valued at approximately $3.9 billion was approved by PPD shareholders at a special shareholder meeting on Nov. 30. Pursuant to the terms of the merger agreement, PPD's shareholders are entitled to receive $33.25 in cash, without interest, less any applicable withholding taxes, for each share of PPD common stock they own. PPD's common stock will no longer be listed for trading on NASDAQ.
Shareholders of record will receive a letter of transmittal and instructions on how to surrender their shares of PPD common stock in exchange for the merger consideration. Shareholders of record should wait to receive the letter of transmittal before surrendering their shares.
Morgan Stanley served as financial advisor, and Lazard provided a fairness opinion, to the board of directors of PPD in connection with the transaction. Wyrick Robbins Yates & Ponton and Skadden, Arps, Slate, Meagher & Flom served as legal advisors to PPD in connection with the transaction. Latham & Watkins, Simpson Thacher & Bartlett and Covington & Burling served as legal counsel, and Credit Suisse served as financial advisor, to Carlyle and Hellman & Friedman in connection with the transaction.
The Carlyle Group is a global alternative asset manager with over $153 billion of assets under management across 86 funds and 49 fund of fund vehicles as of June 30, 2011. The Carlyle Group invests across four segments—Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions—in Africa, Asia, Australia, Europe, the Middle East, North America and South America. The Carlyle Group's Corporate Private Equity business focuses on aerospace, defense and government services, consumer and retail, energy, financial services, healthcare, industrial, technology and business services, telecommunications and media and transportation. The Carlyle Group employs more than 1,100 people in 34 offices across six continents.
Hellman & Friedman is a private equity investment firm with offices inSan Francisco,New YorkandLondon. It has raised and managed over $25 billion of committed capital, focusing on investing in superior business franchises and serving as a partner to management in select industries including healthcare, business and marketing services, software, financial services, internet and digital media, insurance, media and energy and industrials.