Bridgepoint acquires LGC, leader in chemical and biological analytical services
02 Feb 2010
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).
Notes to editors:
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.