Cetero Research
Sale-leaseback financing works well in conjunction with private equity transactions. In this case the private equity investors have been building on Cetero’s CRO platform through a series of acquisitions of established CRO firms. The sale-leaseback financing provided a low-cost and efficient source of capital to fund their acquisition.”
- Benjamin P. Harris, Managing Director, W. P. Carey & Co. LLC
Acquisition Financing
December 2006
Cetero Research is the largest provider of early clinical and bioanalytical research services to the pharmaceutical and biotechnology industries with 1,646 study participant capacity.
Situation: A platform company of Denver-based private equity firm, KRG Capital Partners, Cetero is made up of several separate clinical research organization providers. Cetero/KRG needed to raise capital to fund a fourth acquisition.
Financing: The W. P. Carey Group acquired and leased back a 103,000 square foot medical office facility in St. Charles, Missouri for $21.6 million.
Outcome: KRG was able to use the capital from the transaction to fund a portion of its fourth acquisition.
