* JPMorgan, Deutsche Bank among those interviewed-sources
* Private equity-backed IPOs this year have so far been
By Greg Roumeliotis
NEW YORK, Jan 25 Quintiles Transnational Corp,
the largest provider of contract research for the pharmaceutical
and biotechnology industries, is speaking to banks about a
potential initial public offering, two people familiar with the
matter said on Friday.
Quintiles has held "bake-off" talks with banks this week to
appoint bookrunners for an IPO, the people said on condition of
anonymity because the discussions are confidential. JPMorgan
Chase & Co and Deutsche Bank AG are among the
banks vying for a role, one of the people added.
Private equity firms Bain Capital LLC and TPG Capital LP
became the lead investors in Quintiles in January 2008 after One
Equity Partners sold its stake in the Durham, North
Carolina-based company. Britain's 3i Group Plc and
Singapore's Temasek Holdings are also investors in Quintiles.
"Quintiles routinely evaluates its capital strategy, and it
is our policy not to comment on these matters," Quintiles
spokesman Phil Bridges said.
Bain and TPG declined to comment while 3i and Temasek did
not immediately respond to a request for comment. JPMorgan
declined to comment and Deutsche Bank did not respond to a
request for comment.
Regulatory filings from publicly listed 3i show that the
private equity firm valued its 7 percent stake in Quintiles at
109 million pounds at the end of March 2009, implying an equity
value for Quintiles of 1.56 billion pounds ($2.46 billion).
By the end of March 2012, 3i valued its stake, that had
dropped to 4.9 percent, at 86 million pounds, implying an equity
value for Quintiles of 1.76 billion pounds ($2.77 billion).
Nevertheless, an IPO could value the company substantially above
or below such mark-to-market estimates.
Quintiles refinanced a $2 billion loan in December on more
favorable terms and also took on $475 million in new debt
earlier in 2012 to pay dividends to its private equity owners,
according to notes by credit rating agencies.
Quintiles relies on pharmaceutical companies outsourcing
more of their non-core research functions. It recorded net
service revenue of about $3.5 billion for the 12 months to the
end of June 2012, according to Moody's Investors Service Inc.
Private equity-backed IPOs have put in a strong showing
since the start of the year, prompting more buyout firms to
consider a stock market flotation as a way to exit their
On Thursday, another IPO of a Bain-backed company, Bright
Horizons Family Solutions Inc, raised $222 million.
Investors drove the shares of the company, which is the largest
U.S. child-care provider, up as much as 30 percent in its first
day of trading.
Last week, cruise line operator Norwegian Cruise Line
Holdings Ltd's shares rose 32 percent in their stock
market debut following an IPO of the company, which counts TPG
and Apollo Global Management LLC among its investors.
Bloomberg News reported on the discussions between Quintiles
and the banks about an IPO earlier on Friday.