LGC GROUP
Acquired by
KKR
LGC GROUP acquired by KKR
Target
LGC GROUP
Acquirer
KKR
Context
KKR has signed a definitive agreement to acquire LGC Group from the private equity firm Bridgepoint. This secondary LBO marks a transition for LGC following its ownership by Bridgepoint, which acquired the company in 2010. The strategic rationale for the acquisition is to leverage KKR’s global platform to accelerate LGC’s growth, particularly in North America and Asia. KKR intends to support the company’s ongoing focus on R&D and pursue an aggressive buy-and-build strategy to consolidate the fragmented life sciences tools and services market. The transaction is subject to customary antitrust approvals and is expected to close in the first quarter of 2016. Simpson Thacher acted as legal counsel to KKR for this acquisition.
LGC GROUP, which reported an EBITDA margin of LOGIN in 2014, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a level LOGIN the 10.9x average currently observed in the Business Services sector.
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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Target
LGC Group is a global leader in the Life Science Tools sector, providing critical measurement tools, specialty genomics reagents, and supply chain assurance standards. Established in 1842, the organization serves over 50,000 laboratories worldwide across human healthcare, agri-food, and environmental markets. Its portfolio includes proficiency testing schemes and analytical science capabilities essential for public safety and product regulation. The entity operates a global network across 22 countries and employs more than 3,200 people, including internationally recognized scientific experts. Under its mission "Science for a Safer World," the group enables organizations to develop and commercialize new products while advancing research in genomics and quality assurance.
Ent. Value
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Multiples Analysis
EV / Revenue
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EV / EBITDA
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EV / EBIT
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Historical Financials (EUR)
Other operations with LGC GROUP
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 04/2020 | CINVEN / ASTORG | LGC GROUP | UNITED KINGDOM | TIC (Testing, Inspection, Certification) | A consortium led by Cinven and Astorg has acquired LGC Group from KKR. The transaction, which represents the first investment for Cinven's seventh fund. KKR, which acquired LGC in 2015 from Bridgepoint, reportedly achieved a 3x return on its investment following 15 bolt-on acquisitions and accelerated organic growth. The strategic rationale for the deal is to capitalize on LGC’s leading positions in the diversified and fast-growing genomics and quality assurance sectors. The new owners intend to back the existing management team, led by CEO Tim Robinson, to further expand LGC’s global presence, particularly in the US and Asia, and to pursue significant future development opportunities through complementary acquisitions. The deal was supported by a substantial new capital structure, including senior secured term loans and a 500 million GBP PIK (Payment-in-Kind) facility. |
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