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8-K - FORM 8-K - KENDLE INTERNATIONAL INC | l42626e8vk.htm |
EX-2.1 - EX-2.1 - KENDLE INTERNATIONAL INC | l42626exv2w1.htm |
Exhibit 99.1
INC Research to Acquire Kendle International for $15.25 per Share in Cash
CINCINNATI, OH and RALEIGH, NC, May 4, 2011 INC Research, LLC, a therapeutically focused global
contract research organization (CRO) privately held by Avista Capital Partners and Ontario
Teachers Pension Plan, and Kendle International Inc. (Nasdaq: KNDL), today jointly announced a
definitive merger agreement under which INC Research will acquire Kendle in an all-cash transaction
with a total equity value of approximately $232 million. Kendle is a leading global CRO with
extensive expertise in Phase I-IV clinical development and more than 3,000 associates in 31
countries worldwide.
Under the terms of the agreement, INC Research will acquire all of the outstanding shares of Kendle
for $15.25 per share in cash, representing a 60.5 percent premium over Kendles closing share price
on May 4, 2011. This represents a premium of 51.3 percent over the 30-trading day average of
Kendles closing price. The Board of Directors of Kendle unanimously approved the transaction,
which is expected to close in the third quarter subject to approval by Kendles shareholders as
well as satisfaction of customary closing conditions and regulatory approvals.
Joining forces with INC Research is the right decision for our customers and shareholders.
Combining our highly complementary assets will provide the scale and scope for the combined company
to deliver outstanding global teams, therapeutic expertise and operational excellence for clinical
trials of all sizes, said Kendle President and CEO, Stephen Cutler, PhD. Because both companies
are known for conducting high-quality clinical work and share a common culture based on excellent
service delivery, we will be able to maintain a customer-centric focus on each individual project.
The combination of INC Research and Kendle will enable us to deliver broader capabilities and
reach a critical mass for the emerging drug development outsourcing and alliance partnership
models, said James Ogle, CEO of INC Research. Together,
we bring complementary strengths and expand the breadth and depth of services and expertise that
are most valuable to our customers.
The combination of INC Research and Kendle strengthens both businesses by creating a global CRO
with significant therapeutic capability and geographic diversity. The combined company will rank
among the top-tier CROs based on size and scale, and will be well positioned to handle large-scale
global trials.
As a result of the proposed merger transaction, Kendles earnings release and conference
call/webcast scheduled for Thursday, May 5, at 8 a.m. Eastern Time has been cancelled. In
addition, Kendles Annual Meeting of Shareholders has been postponed from May 19, 2011, with a new
date to be determined by Kendles Board of Directors.
In connection with the transaction, J.P. Morgan Securities LLC acted as Kendles financial advisor
and Keating, Muething & Klekamp PLL acted as its legal advisor. Morgan Stanley & Co. Inc. acted as
financial advisor and Weil Gotshal & Manges LLP acted as the legal advisor to INC Research.
About Kendle
Kendle International Inc. (Nasdaq: KNDL) is a leading global clinical research organization
providing the full range of early- to late-stage clinical development services for the worlds
biopharmaceutical industry. Our focus is on innovative solutions that reduce cycle times for our
customers and accelerate the delivery of life-enhancing products to market for the benefit of
patients worldwide. As one of the worlds largest global providers of Phase I-IV services, we
offer experience spanning more than 100 countries, along with industry-leading patient access and
retention capabilities and broad therapeutic expertise, to meet our customers clinical development
challenges. For more information, please visit www.kendle.com.
About INC Research, LLC
INC Research is a therapeutically focused contract research organization with a high performance
reputation for conducting global clinical development programs of the highest integrity.
Pharmaceutical and biotechnology companies look to INC Research
for a complete range of customized Phase I through Phase IV programs in therapeutic areas of
specialty, and in innovative pediatric and womens health trials. The companys Trusted Process®
methodology and therapeutic foresight leads customers to more confident, better-informed drug and
device development decisions. INC Research is headquartered in Raleigh, NC. For more information
please visit www.incresearch.com or follow us at @inc_research.
About Avista Capital Partners
Avista Capital Partners is a leading private equity firm managing approximately $4 billion of
committed capital with offices in New York, Houston, and London. Founded in 2005, Avistas
strategy is to make controlling or influential minority investments in growth-oriented energy,
healthcare, media, industrial and consumer businesses. Through its team of seasoned investment
professionals and industry experts, Avista seeks to partner with exceptional management teams to
invest in and add value to well-positioned businesses. For more information visit
www.avistacap.com.
About Teachers Private Capital
Teachers Private Capital is one of the worlds largest private equity investors. It is the
private investment department of the Ontario Teachers Pension Plan. With $107.5 billion in assets
as of December 31, 2010, the Ontario Teachers Pension Plan is the largest single-profession
pension plan in Canada. It is an independent corporation responsible for investing the fund and
administering the pensions of Ontarios 295,000 active and retired teachers. For more information
visit www.otpp.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, but not limited to, statements relating to the proposed
transaction between Kendle and INC Research and the expected timing and completion of the
transaction. Words such as anticipate, believe, plan, estimate, expect, intend, will,
should, may, and other similar expressions are intended to identify forward-looking statements.
Such statements are based upon the current beliefs and expectations of Kendles management and
involve a number of significant risks and uncertainties, many of which are difficult to predict and
are generally beyond the control of Kendle and INC Research. Actual results may
differ materially from the results anticipated in these forward-looking statements. There can be no
assurance as to the timing of the closing of the transaction, or whether the transaction will close
at all. The following factors, among others, could cause or contribute to such material
differences: the ability to obtain the approval of the transaction by Kendles shareholders; the
ability to obtain required regulatory approvals of the transaction or to satisfy other conditions
to the transaction on the terms and expected timeframe or at all; transaction costs; economic
conditions; a material adverse change in the business, assets, financial condition or results of
operations of Kendle; and the effects of disruption from the transaction making it more difficult
to maintain relationships with employees, customers or other business partners. Additional factors
that could cause Kendles results to differ materially from those described in the forward-looking
statements can be found in the periodic reports filed with the Securities and Exchange Commission
and in the proxy statement Kendle intends to file with the Securities and Exchange Commission and
mail to its shareholders with respect to the proposed transaction, which are or will be available
at the Securities and Exchange Commissions website (http://www.sec.gov) at no charge. Kendle
assumes no responsibility to update any forward-looking statements as a result of new information
or future developments except as expressly required by law.
Additional Information
This communication is being made in respect of the proposed merger transaction involving Kendle and
INC Research. In connection with the proposed transaction, Kendle will file with the Securities and
Exchange Commission a proxy statement and will mail the proxy statement to its shareholders.
Shareholders are encouraged to read the proxy statement regarding the proposed transaction in its
entirety when it becomes available, and before making any voting decision, as it will contain
important information about the transaction. Shareholders will be able to obtain a free copy of the
proxy statement (when available), as well as other filings made by Kendle regarding the Company,
INC Research and the proposed transaction, without charge, at the Securities and Exchange
Commissions website (http://www.sec.gov). These materials also can be obtained, when available,
without charge, by directing a request to Kendle at info@kendle.com.
Participants in the Solicitation
Kendle, INC Research and their respective executive officers, directors and other persons may be
deemed to be participants in the solicitation of proxies from Kendles shareholders with respect to
the special meeting of shareholders that will be held to consider the proposed transaction.
Information regarding the officers and directors of Kendle is included in its Annual Report on Form
10-K for the year ended Dec. 31, 2010, and the Companys notice of Annual Meeting of Shareholders
and Proxy Statement, which were filed with the Securities and Exchange Commission on March 16,
2011, and April 15, 2011, respectively. Other information regarding the participants in the
solicitation and a description of their direct and indirect interests, by security holdings or
otherwise, which may be different than those of Kendles shareholders generally, will be contained
in the proxy statement (when filed) and other relevant materials to be filed with the Securities
and Exchange Commission in connection with the proposed transaction.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
###
Contacts:
For Kendle: Lori Preuit Dorer, Director, Global Corporate Communications,
Tel: 513 345 1685
For INC Research: Kelly Foster, 619-224-1261, Kelly@johnkellyfoster.com
For Avista: Ruth Pachman, Kekst & Company, 212-521-4891
For Kendle: Lori Preuit Dorer, Director, Global Corporate Communications,
Tel: 513 345 1685
For INC Research: Kelly Foster, 619-224-1261, Kelly@johnkellyfoster.com
For Avista: Ruth Pachman, Kekst & Company, 212-521-4891