Overview

On October 5, 2005, Jubilant Organosys Ltd. (“Jubilant”), an integrated pharmaceuticals company, acquired Target Research Associates, Inc. (“Target”), a US-based, full service Clinical Research Organization (CRO).

Jubilant has acquired a 100% equity stake in Target for a payment of US $33.5 million in cash.

The acquisition is earnings accretive to Jubilant. It provides an established and robust business platform for the rapid growth and development of Jubilant’s clinical research business.

Significance

This is the first ever acquisition of a U.S. CRO by an Indian company, and it represents a major initiative supporting Jubilant’s plan to expand its CRO services globally; it makes Jubilant the largest Indian CRO having operations in India and the USA.

Target is now able to offer its U.S. based clients all the benefits of providing clinical research services out of India, including high quality, cost competitive data management services and access to a large patient population of diversified ethnicity, which will enable faster patient enrollment, thus reducing the time taken to complete clinical studies.

Crosstree’s Role

Crosstree Capital Partners served as financial advisor to Jubilant Organosys in the transaction.

Knowing that Target had conducted a broad, yet unsuccessful sale process, Crosstree generated an opportunity to initiate a transaction for Jubilant, a highly capable buyer not previously considered by Target.

Crosstree assisted Jubilant with diligence and negotiations, providing sound advice which allowed Jubilant to enter the US market with confidence.