News
05-Feb 2010 –
Bridgepoint
acquires LGC, leader in chemical and biological analytical
services
LGC is acquired with management by European private
equity firm
Bridgepoint
LGC, the recognised leader
in chemical and biological analytical services and reference
materials, has been acquired with management by Bridgepoint from
LGV Capital in a transaction that values the business at £257
million.
LGC’s products and services
are focused on customers in forensic
science, pharmaceutical and biotechnology
research, development and quality control; food chain and
environmental surveillance and safety; life
sciences and genomics.
The company is also the UK’s
designated National Measurement Institute for chemical and
biochemical analysis and is the host organisation for the UK’s
Government Chemist function. LGC has
ca 1,500 employees in 28 laboratories and centres across
Europe and at sites in India, China and the US. Forecast revenue
for the year ended 31 March 2010 is £130m, having grown at a
compound annual growth rate of ca 18% over the last
decade.
David
Richardson, chief executive of LGC, said that today's
announcement marks the start of a new building phase for LGC and an
exciting future: 'We are delighted that, with Bridgepoint’s
support, LGC will be well placed to enhance our market coverage and
to continue our progress to becoming a world- leading scientific
service business.'
Chris Busby, partner at
Bridgepoint responsible for investments in the business services
sector, commented: "LGC is uniquely positioned within high
quality, high performance laboratory services for critical market
sectors and is strongly placed for further growth on the back of
increasing regulation and the trend to outsourcing within both the
public and private sectors. LGC is a leader with a strong
service-based reputation in fragmented but growing markets, and we
intend to support the company in consolidating its market position
as it begins to make focussed acquisitions to build scale in the UK
and internationally.’"
Advisers involved in this
transaction included: for Bridgepoint – HSBC and Rothschild
(advisory), HSBC, Lloyds, Bank of Ireland and SocGen (debt), LEK
(commercial due diligence), Ernst & Young (financial due
diligence), Clifford Chance (legal), ERM (environmental), Deloitte
(debt advisory); for management – PWC (advisory); for LGV – KPMG
(advisory), Ashurst (legal); OC&C Strategy Consultants
(commercial due diligence); for the debt providers – Ashurst
(legal).
- Ends -
Notes to
editors:
About Bridgepoint
Bridgepoint (http://www.bridgepoint.eu/) is a
European private equity firm focussing on the acquisition of
companies valued up to €1 billion. With some €11 billion of capital
raised to date, it typically focuses on acquiring well managed
companies in attractive sectors with the potential to grow
organically or through acquisition. Although a generalist investor,
Bridgepoint has developed expertise in the business services,
consumer, financial services, healthcare, media, and industrial
sectors. It has offices throughout Europe in Frankfurt,
Istanbul, London, Luxembourg, Madrid, Milan, Paris and
Stockholm.
In January 2010 Bridgepoint realised its
investment in Pets at Home, the UK pet food and product retailer,
selling the business to KKR for £955 million. Bridgepoint is
currently investing its Bridgepoint Europe IV Fund, which was
raised in 2008 with total commitments of € 4.8 billion from leading
institutional investors globally. To date, this fund has
completed investments in Terveystalo Healthcare Oyj, the largest
private healthcare business in Finland and TüvTurk, the provider of
statutory vehicle inspections in Turkey.