RLPC-Bain agrees 200 mln stg buyout of Plasma Resources UK -source

LONDON, July 18 Thu Jul 18, 2013 8:38am EDT

LONDON, July 18 (Reuters) - Private equity firm Bain Capital has agreed to buy a majority stake in British government-owned Plasma Resources UK (PRUK) for around 200 million pounds ($303.46 million), a source close to the deal said on Thursday.

The government has been seeking a private-sector partner to fund much-needed modernisation in PRUK, the Department of Health's blood plasma supplier. Bain is planning a 50 million pound capital investment in the business, the source said.

The sale would add to the growing list of privatisations in Britain including a planned listing of a majority stake in the Royal Mail postal service on the stock market.

Lazard advised on the sale process which has seen Bain agree to buy an 80 percent stake in the company funded with equity and without third party bank debt, while the government will retain 20 percent, the source said.

Bain declined to comment and the Department of Health was not immediately available to comment.

The British government said in January it would sell the majority or all of its shares in PRUK. It had previously said a sale to the private sector was in "the best interests of the company, the taxpayer and patients", citing an independent review.

Bain fought off competition for PRUK which attracted interest from a number of potential buyers including South Korean drugmaker Green Cross Corp and German blood plasma specialist Biotest.

The majority buyout would further bolster Bain's presence in the healthcare sector. It is part of a consortium that bought hospital operator HCA in 2006 in a $21 billion deal. HCA is a big buyer of plasma-derived products.

Bain also owns Quintiles, a biopharmaceutical services provider, as well as pharmaceutical company Warner Chilcott.

PRUK's unit, Bio Products Laboratory Ltd, makes plasma products from blood given by donors at 32 centres in the United States operated by DCI Biologicals Inc. It does not draw on domestic donors due to concerns over the risk of transmitting variant Creutzfeldt-Jakob disease (vCJD) in Britain. The business had annual sales of about 123 million pounds in 2011.

Plasma products are used to treat blood coagulation disorders, autoimmune diseases and immune deficiencies. ($1 = 0.6591 British pounds) (Editing by Tessa Walsh and Pravin Char)

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