Product category:
Contract research
News Release from: LGC
Edited by the Laboratorytalk Editorial
Team on 07 January 2004
Secondary buyout to fuel future growth
LGC's major stakeholder will become Legal and General instead of 3i, if shareholders approve a deal valuing the company at £70 million
LGC has agreed terms with private equity investor Legal and General Ventures (LGV) over a deal that, if accepted by shareholders, will see LGV acquire 3i's stake and become the majority shareholder in LGC LGV has valued the company at £70m and senior debt has been arranged by HSBC, Bank of Ireland and SG Corporate and Investment Banking
This article was originally published on Laboratorytalk on 10 Jun 2002 at 8.00am (UK)
Related stories
New FTMS for LGC
LGC selects £500k Bruker Daltonics Fourier transform instrument to expand its mass spectrometry capability for chemical and bio-molecules
Catalogue of abuse
Reference materials for clinical, forensic and toxicological analysis updated to include new matrix materials including drugs of abuse in saliva
In addition to fulfilling its role as the UK's national measurement laboratory for chemical and biochemical analysis, LGC provides analytical and diagnostic services to clients in the public and private sectors and distributes analytical and biological reference standards across Europe.
The company undertakes BSE testing, the genotyping of sheep to eradicate scrapie and food quality analysis.
One of the company's fastest-growing areas of work is DNA-based diagnostic services, which include forensic investigations for police forces.
Further reading
USP Standards 100 course comes to Europe
Seminars for pharmaceutical industry professionals in the use of USP-NF (United States Pharmacopoeia and National Formulary) standards in Runcorn, UK, and Luckenwalde, Germany
Practical training for measurement in the lab
Valid Analytical Measurement programme publishes new guides on CD-Rom designed to make achieving best laboratory practice easy for inexperienced staff
Achema preview: LGC Promochem
Supplier of certified reference materials will be introducing its increased product range at the Frankfurt fair
Since LGC was formed as a private company seven years ago with the backing of 3i and the Royal Society of Chemistry, its turnover has increased from £15m to £52m and the company has achieved a ten-fold increase in profit.
Staff numbers have grown over the same period from 270 to over 700 today.
Over 400 staff hold shares or share options in the company.
Richard Worswick, LGC's chief executive, commented: "The board considers LGV's offer to be an excellent deal for LGC and its shareholders, reflecting LGC's strong performance to date and its potential for further growth.
"With the full support of LGV, the management team will continue to lead the company through its next phase of development.
"LGC has built up a strong foundation for growth over the past seven years.
"Our success is built on a clear vision, focused strategy, effective implementation and integration of acquisitions as well as active pursuit of organic growth opportunities.
"We have forged long-term contracts and partnerships with blue-chip companies and public sector organisations.
"Our acquisition of the German custom synthesis company Mikromol earlier this year underlines our strategy to penetrate the pharmaceutical sector and to expand our international operations.
"The recent opening of a new distribution office in Italy reflects the increasing demand throughout Europe for high quality reference standards and biomaterials".
Brian Phillips, managing director of LGV, said: "LGC is an ideal fit for the LGV portfolio.
"LGC is the leader in its core markets and has a dynamic workforce operating in growing markets.
"Its track record speaks for itself.
"LGV brings capital, financial acumen and broad experience that will enable LGC to continue its strong growth, particularly in forensics, food testing and pharmaceuticals.
"LGC Promochem, LGC's international distribution business, will be ideally placed to capitalise on the opportunities arising from European Union expansion.
"LGV's 'buy and build' focus is ideal for LGC at this stage in the company's development".
Andrew Fraser, director of healthcare, 3i, stated: "LGC is typical of other high growth 3i backed businesses.
"It has a great business model, an excellent management team and a considerable market opportunity.
"We are extremely proud to have invested in LGC and it has proved to be a very successful investment".
LGC shareholders have until 20 January 2004 to consider the offer, after which a further announcement will be made.
• LGC: contact details and other news
• Email this article to a colleague
• Register for the free Laboratorytalk email newsletter
• Laboratorytalk Home Page
Search the Pro-Talk network of sites
