Thompson Street Exits Lab Platform

Thompson Street Capital Partners (TSCP) has sold Analytical Lab Group to Element Materials Technology, a portfolio company of Bridgepoint Capital.

Analytical Lab Group (ALG) provides FDA- and EPA-focused microbiology testing services to the healthcare, drug, and consumer product industries. The company’s testing services include microbiological examination; sterility; batch release (certification of a medicinal product or a drug prior to release); preservative effectiveness; and environmental testing.

ALG, led by CEO Alan Roth, employs more than 130 scientists and experts at three locations in the metropolitan areas of San Francisco, Minneapolis, and Boston.

“Led by our talented team, ALG has become a lab of scale with the right combination of breadth of services and agility to meet clients’ needs,” said Mr. Roth. “TSCP has been extremely supportive of organic and inorganic investments, including a recent expansion of one of our labs to conduct SARS CoV2 antimicrobial testing. ALG has become a ‘go-to’ lab amongst our customers during TSCP’s ownership period and will continue providing these same, great services.”

TSCP acquired Acton, Massachusetts-based Microbiology Research Associates (MRA) in May 2015. In September 2016, the company completed its first add-on acquisition with the buy of Eagan, Minnesota-based Accuratus Lab Services; and a year later closed its second add-on with the buy of Concord, California-based Microbiology & Quality Associates. In March 2019, TSCP formed Analytical Lab Group to rebrand each of its three companies under one corporate name.

St. Louis-headquartered TSCP invests in companies with EBITDA between $5 million and $25 million. Sectors of interest include healthcare and life science services, software and technology services, and business services and engineered products. In July 2018, the firm held a final closing of its fifth fund, Thompson Street Capital Partners V LP, at its hard cap of $1.15 billion.

“ALG has been a ‘buy and build’ platform for TSCP. Via a series of acquisitions that focused on the important trend of antimicrobial and antiviral across a variety of end markets, including pharmaceutical and life sciences, ALG has become a valuable platform in the lab space,” said Matt Scherrer, a managing director at TSCP.

Element Materials Technology is a provider of materials and product qualification testing, inspection and certification services to the aerospace, transportation, industrials, technology, energy, and fire & building products sectors. The London-based company has more than 189 laboratories in more than 33 countries in North America, Europe, the Middle East, Africa, Asia, and Australia.

Bridgepoint Capital acquired Element in November 2016 from 3i Group. Bridgepoint makes equity investments between €75 million and €400 million in companies typically valued between €200 million and €1 billion. Sectors of interest include business services, consumer, financial services, healthcare, manufacturing & industrials, and media & technology. Bridgepoint is headquartered in London with additional locations worldwide.

Houlihan Lokey was the financial advisor to ALG on this transaction and Sidley Austin’s private equity practice provided legal services.

Private Equity Professional | July 28, 2020

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