DFW Sells ERG to Linden

DFW Sells ERG to Linden

DFW Capital Partners has sold Evolution Research Group to Linden Capital Partners.

Evolution Research Group (ERG) is a provider of independent clinical research services for behavioral (schizophrenia, depression, bipolar disorder) and neurological (Alzheimer’s disease, Parkinson’s disease, pain) disorders as well as patients dealing with addiction, sleep disorders, and renal insufficiency disorders.  The company has completed over 5,000 clinical trials in phases 1-4 through its outpatient and inpatient facilities, offers over 380 beds across the US, and provides access to more than 215,000 special population subjects and healthy volunteers to the pharmaceutical and biotechnology industry.

ERG is comprised of ten wholly-owned and operated clinical research units, Thievon-Wright Consulting Group, and a network of eleven affiliated clinical research sites. ERG is headquartered in Watchung, NJ (www.evolutionresearchgroup.com).

DFW formed ERG in April 2014 to acquire Thievon-Wright Consulting, a provider of placement and management services for clinical trials. During its ownership term, ERG completed six add-on acquisitions which increased its geographic reach and therapeutic capabilities. “DFW has been an excellent partner over the past four years,” said Lori Wright, Chief Executive Officer of ERG. “They have provided capital and guidance that has allowed ERG to expand and diversify the company both organically and through strategic acquisitions. The management team at ERG is excited to begin this next phase of growth with Linden Capital Partners.”

Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries with a specific interest in medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Linden’s strategy is based on three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. The firm is based in Chicago (www.lindenllc.com). Earlier this month, Linden closed its fourth private equity fund, Linden Capital Partners IV LP, at the hard cap of $1.5 billion. Fund IV was oversubscribed and exceeded its target of $1.25 billion. ERG is the first platform investment for the new fund.

“Lori and the entire management team have built a tremendous business in ERG. Their strong track record of operational excellence, quality, and customer service, together with a rare skill set in managing complex patient populations, makes ERG a unique and highly value-added clinical research site business,” said Michael Farah, a Partner at Linden. “Our investment in ERG further builds upon our pharmaceutical services sub-sector strategy and we look forward to partnering with management to continue to grow ERG both organically and through acquisition.”

“Working with Lori Wright and the ERG team was wonderful. They built the strongest clinical trials platform in the industry and are poised for grander success in their partnership with Linden,” said Brett Prager, a Partner at DFW.

DFW invests from $15 million to $50 million in lower middle-market service companies. Sectors of interest include healthcare and outsourced business and industrial support services.  The firm is headquartered in Teaneck, NJ, and has an additional office in Chevy Chase, MD (www.dfwcapital.com).

Harris Williams & Co. (www.harriswilliams.com) and Edgemont Capital Partners (www.edgemontcapital.com) were the financial advisors to ERG.

© 2018 Private Equity Professional | May 30, 2018

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