California Cryobank has been acquired by Longitude Venture Partners and NovaQuest Capital Management. Equity for the transaction was provided by Longitude Venture Partners II, LP and NovaQuest Pharma Opportunities Fund III, LP. The transaction closed on August 19, 2014.
California Cryobank (CCB) is a provider of reproductive tissue donor services and storage and stem cell banking. The company provides a resource for frozen donor sperm and specialized reproductive services, including private egg and embryo storage services. In addition, since 1997, CCB has provided stem cell services through its FamilyCord subsidiary, including both cord blood and cord tissue banking. CCB operates throughout the United States, as well as Europe, South America, and Asia. The company is registered with the FDA, accredited by the AATB (American Association of Tissue Banks), licensed by the states of California and New York, and has three CLIA-certified clinical laboratories. The company was founded in 1977 by Dr. Charles Sims and Dr. Cappy Rothman and is headquartered in Los Angeles (www.cryobank.com).
Longitude Capital invests from $10 million to $30 million in companies active in the life sciences, medical device and biotechnology sectors. Longitude Capital has over $700 million in assets under management and most recently raised $385 million for its second fund, Longitude Venture Partners II, LP, in 2012. The firm was founded in 2006 and has offices in Menlo Park, CA and Greenwich, CT (www.longitudecapital.com).
“CCB is a market-leading, high-growth and profitable company whose products represent the highest level of quality and customer service in major areas of medical need,” said Dr. Gregory Grunberg, Managing Director at Longitude, “We believe CCB’s senior management team has the vision and the operational strength to expand the company’s business and meet the growing needs of customers in the fertility and cellular therapy markets.”
NovaQuest Capital Management invests in companies active in the healthcare industry with a specific interest in biopharmaceuticals. The firm is based in Raleigh, NC (www.novaquest.com).
“NovaQuest is extremely pleased to begin its ownership relationship with CCB. In the four decades since its founding, CCB has become the leading global reproductive tissue services company, with unparalleled customer service and operating practices. We are excited to join CCB’s outstanding management to build on this solid foundation and expand both the scale and scope of CCB’s business,” said William Robb, Partner at NovaQuest.
Harris Williams & Co. (www.harriswilliams.com) acted as the exclusive advisor to California Cryobank. The transaction was led by Todd Morris, Andy Dixon, and Andrew Hewlett of Harris Williams & Co.’s Healthcare and Life Sciences Group.
“CCB is well positioned to capitalize on demographic and cultural trends driving demand for its services and to continue its strong track record of growth in partnership with Longitude and NovaQuest,” said Andy Dixon, a Director at Harris Williams. “We expect to see additional growth and consolidation in the broader fertility markets.”
2014 PEPD • Private Equity’s Leading News Magazine • 8-21-14