Huron Enters Lab Furniture Sector

Huron Enters Lab Furniture Sector

Huron Capital has acquired Lab Crafters, a manufacturer of laboratory furniture used in the biotech, pharmaceutical, higher education, and government sectors.

Lab Crafters’ products include steel and stainless steel casework and cabinets, tables and laboratory benches, and fume hoods and other laboratory ventilation devices. Lab Crafters, family-owned through three generations, is headquartered on Long Island in Ronkonkoma, New York.

In partnership with Huron, founder Robert DeLuca, Sr. will continue to lead the company as chief executive officer, and Robert DeLuca, Jr. will continue as the company’s president. “We are proud to have built Lab Crafters into one of the leading manufacturers of specialized furniture for laboratories in the U.S.,” said the senior Mr. DeLuca. “We are confident that our partnership with Huron will provide the necessary capital and industry expertise to further accelerate our national growth while we continue to serve our existing customers.”

“Lab Crafters offers competitive, differentiated products to its customers,” said Brian Walker, a partner at Huron Capital. “The company has already gained meaningful share in the laboratory furniture market, and its loyal customers include some of the nation’s largest Fortune 500 companies and premier research institutions. Huron has invested in Lab Crafters because we believe the company is capable of accelerated growth and we are focused on pursuing a number of strategic initiatives to diversify and expand this runway.” Mr. Walker, who will join Lab Crafters’ board of directors, joined Huron in February 2019 and is the former chief executive officer of office furniture maker Herman Miller.

Huron Capital makes control and non-control investments in companies with revenues of $20 million to $200 million and EBITDAs of $5 million or more. Sectors of interest include business services, consumer goods and services, and specialty industrials. Founded in 1999, the Detroit-based firm has raised over $1.8 billion in capital through six private equity funds and invested in over 175 companies.

“Robert DeLuca, Sr. and his management team have developed Lab Crafters into a company that is well respected by its customers, makes products that are increasingly sought after by the market, and is ultimately poised for growth,” said Scott Hauncher, a partner at Huron. “We are excited about Lab Crafters future and pleased to welcome the company to our firm as its newest platform.”

Backcast Partners provided senior secured debt and preferred equity to support the buy of Lab Crafters by Huron. Backcast invests from $10 million to $100 million in companies with EBITDA of $10 million to $50 million that operate in a wide range of industries. Typical investments include senior and junior secured and unsecured debt, unitranche facilities, mezzanine debt, preferred equity, and common equity co-investments.

“Backcast has been an ideal partner to work with on this transaction,” said Mr. Hauncher, a partner at Huron Capital. “Their ability to understand the business, be a value-added partner, and work efficiently to a close was outstanding.”

Backcast has offices in New York City; Millburn, New Jersey; and Los Angeles, California and has a strategic relationship with Centre Partners which provides administrative and other resources.

© 2020 Private Equity Professional | March 10, 2020

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