Equistone backs $100m Concept formation

Ellie Pullen
08 July 2014

Tweet
Facebook
LinkedIn
Google plus
Send to

Equistone Partners Europe has acquired a majority stake in newly formed business Concept Life Sciences, created through a hat-trick of acquisitions with a combined value of $100m.

Equistone has made its investment in the new company through its Fund IV, which closed in January last year on €1.5bn. The deal marks the 21st investment made by the fund.

Concept has acquired Peakdale Molecular, Resource & Environmental Consultants (REC) and Scientific Analysis Laboratories (SAL), all of which operate across the UK.

There are plans for the company to eventually expand into the rest of Europe and the US, with Concept and its backer planning to carry out an ongoing buy-and-build strategy.

Peakdale, based in Chapel-en-le-Frith and Sandwich, was founded in 1992 by its CEO Ray Fisher.

Manchester-headquartered REC has 13 offices across the UK. The company was founded in 1995.

SAL was founded in 1990 and currently operates five laboratories in Cambridge, Braintree, Manchester, East Kilbride and Moy in Northern Ireland.

Debt
A senior debt package has been provided for the deal by Lloyds Bank Commercial Banking and HSBC.

Company
Concept is headquartered in Manchester and, as a group, will focus on lab-based analytical testing and chemistry synthesis. The aim is for its activities to be utilised within biological sciences, cell-based absorption, distribution, metabolism and excretion (ADME) services, biostorage and stability testing.

The new company has 500 staff and 10 core locations.

People
Concept will be led by executive chairman Michael Fort and CEO Alan Morgan. Equistone partner Steve O'Hare and investment director Andi Tomkinson sourced and led the deal; they will both join the company's board of directors.

Advisers
Equity – Deloitte, Andy Westbrook, Oliver Tebbutt (Corporate finance, financial due diligence); Addleshaw Goddard, Paul Medlicott (Legal); PwC, Nick Hatton, Stephen Woodhouse (Tax); EY (Commercial due diligence); Intuitus (IT due diligence); Marsh (Insurance due diligence); Deloitte Real Estate (Real estate due diligence).
Company (Peakdale) – Diagnostic Capital, Alex Clarkson (Corporate finance).
Company (SAL) – Altium, Simon Lord (Corporate finance).