LGV Capital (“LGV”) has sold its majority interest in LGC Group Holdings Limited (“LGC”) to Bridgepoint in a transaction valuing LGC at £257 million. Bridgepoint will back the current management team, led by Chief Executive David Richardson.
LGC is the UK’s leading provider of chemical and biological analytical services and reference materials. Headquartered in Teddington, West London, LGC employs c.1,500 staff across a network of 28 sites in 17 countries. Over 65% of LGC’s employees are graduates, of whom 18% are PhD holders.
LGC provides its services to a mixed public and private sector customer base through four divisions:
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LGC Forensics: the only independent full service forensic science provider in the UK;
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LGC Standards: a leading laboratory support business, offering Europe’s most comprehensive range of 70,000 reference materials from the world’s principal producers and from its own manufacturing facilities;
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Life & Food Sciences: a provider of a range of services including BSE testing to the UK meat industry, DNA / genetic analysis services, pesticides and veterinary residues testing etc; and
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Research & Technology: a provider of high value niche services to the industrial sector and forming partnership laboratories with regulatory bodies.
Commenting on the transaction, David Richardson, Chief Executive of LGC said: “We are grateful that LGV has been such a highly supportive partner for our business throughout its period of investment. During that time, LGV has backed management in making seven bolt-on acquisitions and building a highly scalable platform for future growth. Through combining strong organic growth with complementary acquisitions, LGC has developed each of its core divisions while substantially increasing its international reach.”
Commenting on the transaction, Ivan Heywood, Chief Executive of LGV said: “LGC represents the latest exit from a series of successful LGV investments in the services sector. We have backed the business during a period of significant growth, doubling turnover and trebling EBITDA during our period of ownership. We would like to thank David, his senior management team and all the staff for their hard work in making this a successful investment for LGV. We wish them well for the future and are confident of their continued success.”
For the year ended 31 March 2009 LGC had revenues of £119.6m and EBITDA of £19.9m. LGC has maintained its strong track record of growth in the current financial year.
LGC was advised by KPMG Corporate Finance and Ashurst on the transaction.
