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Cinven and Astorg to pick up UK-based LGC
Posted on Thursday, 21 November 2019 13:59
A consortium comprising Cinven and Astorg have signed an agreement to acquire UK-based life sciences company LGC Group from KKR.

Financial terms of the transaction were not disclosed; however, the Financial Times cited people with knowledge of the matter as saying the deal is worth GBP 3.00 billion.

This value would make it the second-largest deal targeting a testing laboratory group announced in 2019 to date, according to Zephyr, the M&A database published by Bureau van Dijk.

LGC, which employs 3,200 people, provides a range of measurement tools, proficiency testing schemes, supply chain assurance standards and speciality genomics reagents, with leading analytical and measurement science capabilities.

The group serves markets such as human healthcare, agri-food and environmental from 50,000 laboratories worldwide.

In KKR’s announcement regarding the sale, it said LGC has generated a 10.0 per cent compound annual growth rate in revenue since 2016, totalling GBP 448.00 million in 2019.

Closing, the date of which was not disclosed, remains subject to regulatory approvals.

LGC provides measuring and testing services that can determine the quality of beer brewers’ malt, check for salmonella in milk powder and find traces of drugs in hair samples.

KKR acquired the business from Bridgepoint in 2015 for GBP 650.00 million.

Zephyr shows there have been 284 deals worth USD 9.72 billion targeting testing laboratories announced worldwide since the start of 2019.

The year so far not only represents an improvement on the entire 2018 period when 208 transactions valued at USD 2.28 billion were signed off, but is also the largest year for such deals by both volume and value on record.

In the biggest signed off in 2019, Macquarie Infrastructure and Real Assets agreed to buy German analytical laboratory services provider Currenta Geschaftsfuhrungs for EUR 3.50 billion.

US-based Genomic Health is being acquired by Exact Sciences for USD 2.80 billion in the current second-largest deal.

Together these two transactions, based on the current currency exchange from EUR to USD, represents 69.2 per cent of total value for the sector in 2019 to date.

© Zephus Ltd