KKR-Backed Headlands Research Taps Advisor for Potential Sale

Reporting: Armie Margaret Lee

KKR-backed clinical trial site organization Headlands Research has hired Houlihan Lokey to explore a potential sale, according to industry sources.

Based in Lake Worth, Fla., Headlands has more than 20 trial sites across the United States and Canada. It focuses on areas including mental health, the central nervous system and vaccines.

KKR invested in Headlands in 2018 through its Health Care Strategic Growth Fund.

In 2019, Headlands acquired six clinical research centers spanning three organizations: Centex Studies, Clinical Research Atlanta and Okanagan Clinical Trials. Headlands’ other acquisitions include Peninsula Research Associates in 2022, Clinvest Research in 2023 and Trial Management Associates in 2024.

Recent deals in the clinical research site sector include Webster Equity Partners’ sale of CenExel Clinical Research Inc. to BayPine LP in April, reportedly for about $1.5 billion. Webster will retain a minority stake in CenExel. Blue Owl provided more than $600 million in debt financing to back the transaction, and the pricing was in the SOFR+450 bps-500 bps range, Octus, formerly Reorg, reported in April.

Last year, Genstar Capital LLC bought a majority stake in Flourish Research, marking an exit by NMS Capital LLC. The Flourish transaction was done at an EBITDA multiple in the high teens, Octus reported in September.

KKR had no comment, and Houlihan declined to comment. A Headlands representative did not immediately respond to a request for comment.