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PPD sold to equity firms for $3.9 billion

READ MORE: PPD sold to equity firms for $3.9 billion
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WILMINGTON, NC (PPD) -- One of Wilmington's largest employers has been sold. PPD announced today that it has entered into a merger agreement with two private equity firms.

The Carlyle Group and Hellman & Friedman have agreed to buy Pharmaceutical Product Development for $3.9 billion. Once the sale is final and all stocks are sold, the pharmaceutical research firm will become a private company.

Carlyle and Hellman & Friedman have agreed to acquire common shares of PPD for $33.25 per share in cash. That's nearly 30 percent above PPD's closing price at the end of September.

PPD's Board of Directors unanimously approved the merger agreement and recommended that the company's shareholders adopt the agreement as well.

"The sale of PPD to The Carlyle Group and Hellman & Friedman provides an attractive return for our shareholders, while also ensuring a secure foundation and commitment to investment, innovation and excellence for PPD clients and employees as the company builds on its 25-year history of success," said Fred Eshelman, founder and executive chairman of PPD.

Wilmington Mayor Bill Saffo said he's not surprised by the sale. He said he sees the investment in our community as a good thing.

"We're very hopeful that the company is going to remain here in Wilmington," Saffo said. "They've been here for quite some time. Obviously, the founder of the company, Fred Eshelman, started this company here in Wilmington. They have a long history here in our community, and I feel that they will stay here."

Saffo says PPD's presence in Wilmington is a vital part of downtown and an important part of our economy because of its more than one thousand jobs.

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Haven't you guys been listening to the Wall Street protestors?

You're filthy, greedy Capitalists who should have everything taken away from you by the government so that it can be redistributed to the people who need money.

You guys need to realize that those teenagers and twenty-somethings (and a few aged hippies) with their greasy, matted dreadlocks, banging drums and protesting everything from global warming to fur to "social inequity" have ALL the answers. They know all about high finance from buying dope.

Oh well, Winter is coming. They'll lose interest soon. Meanwhile, I'd suggest NYPD review films from the Democratic Convention of 1968 to see how it's done.

BTW, Peyton, the whole market is in such a funk that I think you're lucky it sold for what it did. I'm sitting on more investment grade bonds than ever before in my portfolio, and I'm being very selective and cautious on what stocks I buy. The worst is yet to come.

I've seen them

They are quite the nutjobs just sitting around chanting. Seems like they wouldn't need my money given to them if they would just get a job. But then that would take effort and most jobs won't let you show up high.

PPD

Frankly, as a stockholder, I am just a little disappointed. I would have thought the price would have ended up at 36-38 dollars a share. But, PPD has been good to us, a lot better than most.

Peyton

in just about every investment opportunity, you always want to leave some meat on the bone for the party buying from you. If they can not see the profit potential, and unlike years gone by the window of time for that profit to appear is smaller, it will not be prudent business sense for an investor to buy.

True in Real Estate; true in the Stock Market. Even in the auto industry, if the buyer does not feel they are getting a good deal, they will continue shopping until they do. And this is a buyer's economy.

I have to voice Common's statement, the worst may be yet to come. There is a global recession possible. Every other week or so, we see reports of a US government shutdown. On a positive note, the FDIC is shuttering some of its offices which should be an indicator the worst has passed for the banking industry.

Now if some in government would just accept how damaging give away programs like Medicaid are to our economy; and would take the necessary steps to stem the flow of billions for free health care, then we might see our way out of this quagmire.

Vote

The shareholders still have to vote on it before the sale can go through. This will be a nice payday in my pocket until the government steps in to take the capital gains tax. Got to make sure the sponges get to keep free cell phone use.

Unless you're in the...

no to low tax bracket, you're better off paying the long-term capital gains tax than ordinary income tax. I agree though...those free cell phones are their "link" to the outside world.

I pay

I pay and then pay more. The sponges use the free phone to call their friends to see what they want from the store. They then purchase all kinds of food with an EBT card. Then out comes the cash to purchase beer, cigarettes and dog food. Maybe a stop by the hospital for some free medical care and then back to the taxpayer provided housing with electrical bill assistance.

I got the flyer...

and it was quite enticing... free cell phone, and all I had to do was check the box, and not prove, what entitlement program I was on and I was instantly qualified without verification... Im sorry, but no matter how bad times get, I am a able bodied person with good sense and the the drive to not only survive, but get ahead only upon my own efforts. If my phone gets shut off, I need to work harder, if my food is not there, thats my fault. If my rent is not paid, I am homeless... but thats not going to happen! I not only will keep my my head up, I not only will work for what I have, But I will make sure that three others that believe as I do, go vote when it counts. The sheeples can put on their marching boots all they want, I am going to work.

Amen brother

I like your choice in user name and your work ethic. Keep it up, not everybody can be on welfare. Somebody has to pay the Pied Piper.

Guesty...

I'm right there with you!