Partners Group, the Swiss-based private equity firm, purchased PCI Packaging Group from Frazier Healthcare Partners earlier this month. Philly-based PCI provides outsourced services to the global pharmaceutical market. Though terms have not been disclosed, a Fortune article stated the purchase values PCI just over $1 billion. Frazier will roll a portion of the proceeds back into the company to retain a minority stake.
PCI was formed in 2012 when Frazier conducted a flurry of M&As focused on pharmaceutical packaging and manufacturing. “Big pharma companies are under a lot of pressure to control costs, which means they’re looking to optimize their supply chains,” said Joel Schwartz, a managing director at Partners Group. “Outsourcing is becoming an increasing part of that optimization, which is why private equity has so much interest right now.”
A Reuters article in March reported Frazier was shopping PCI around with RBC Capital Markets at the helm and a $1B price tag. “We had a lot of inbound interest and there were some things we wanted to do in terms of additional M&A, and this deal with Partners gives us a stronger capital base,” said Nathan Every, a PCI board member and partner at Frazier.
