Exponent sells BBI Group to Novo Holdings in £400m deal

Harriet Matthews
15 June 2021

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Exponent Private Equity has sold its stake in UK-based diagnostics business BBI Group to Novo Holdings in a deal that values the company at more than ТЃ400m.

Unquote sister publication Mergermarket reported in March 2021 that Exponent had mandated JP Morgan to run the exit process for BBI Group. The company is to be marketed based on EBITDA of £20m, the report added.

Exponent sold BBI Health, a division of BBI Group, in a £36m trade sale earlier in June 2021, as reported.

Exponent acquired BBI in 2015 from US-based listed healthcare company Abbott (then known as Alere) in a deal that valued the company at £75m. The GP has invested in BBI via its third and fourth funds, according to its website.

Exponent said in a statement that BBI made three add-ons during the investment period, acquiring Novarum DX, Maine Biotechnology Services and Diarect. The company also expanded its presence in the US and expanded its operations in China.

Copenhagen-headquartered Novo Holdings is backed by the Novo Nordisk Foundation. Novo Holdings makes venture, growth and buyout investments in the life sciences sector via its evergreen funds. The firm said in a statement that its investment in BBI is part of its Principal Investment strategy, which targets well-established life sciences companies.

BBI Group and BBI Health are Exponent's first exits since 2019, according to Unquote Data. Prior to this, Exponent's most recent exit took place in June 2019, when the GP sold its stake in Scotland-based whisky producer Loch Lomond to Hillhouse Capital in a £400m SBO.

Company
Founded in 1986, BBI provides products and services for the diagnostics, healthcare, research, defence and food industries. Its products include critical reagents and smartphone reader technologies, while its services include lateral flow and immunoassay development.

BBI is headquartered in Crumlin in South Wales and employs around 400 staff across seven countries. According to its latest annual report, the company posted revenues of £58m in the 2019 financial year, compared with £61.8m in 2018. BBI's 2019 EBITDA before exceptions was £14.8m, compared with £13.1m in the previous year. BBI posted 2020 revenues of £60m, while its Health division generated revenues of £10.2m.

People
BBI Group – Alan Peterson (chair); Mario Gualano (CEO).
Exponent Private Equity – Chris Graham, James Gunton (partners).
Novo Holdings – Johan Hueffer (senior partner).

Advisers
Equity – Lazard (corporate finance); Kromann Reumert (legal); Latham & Watkins (legal); Linklaters (legal).
Vendor – JP Morgan (corporate finance); LEK (commercial due diligence); PwC (financial due diligence); Allen & Overy (legal)