Lab Logistics, a portfolio company of Atlantic Street Capital, has acquired The Allied Group, a provider of printing, kitting, and mailing services, from Compass Group Equity Partners.
The Allied Group , through its TAGmedica division, designs, prints, assembles and fulfills diagnostic kits – more than 2.5 million annually – that are used by life sciences and biotech companies to collect genetic material for DNA screening and heredity disease detection.
The company also provides healthcare companies with clinical forms management services, lab and pharmacy labels, and patient education materials. Allied, led by CEO Bob Clement, was founded in 1946 and operates from an FDA-approved assembly and headquarters facility in Cranston, Rhode Island.
Lab Logistics is a West Haven, Connecticut-based provider of asset‐light and same-day transportation services to the medical laboratory and hospital industry. The company’s customers include university health systems, independent laboratories, contract research organizations and national health systems. The company, led by CEO Ruth Abdulmassih is comprised of Lab Logistics, Hospital Couriers Corp., and Path-Tec, whose couriers serve over 450 hospitals and labs across the United States.
“The addition of The Allied Group is a compelling strategic combination that demonstrates our commitment to expanding and deepening our product and kitting offering, further expansion in the pharma services customer sector and expands our domestic and international reach,” said Ms. Abdulmassih.
“Lab Logistics offers a strong cultural fit for our company and was clearly the right partner for our employees and customers,” said Mr. Clement. “I look forward to working with Ruth and the Lab Logistics team to ensure a smooth transition for all of our stakeholders and continuing our mission of delivering great service to customers and being a great place to work for our employees.”
“The partnership with Lab Logistics represents an exciting next step in Allied’s journey,” said Chris Gibson, a managing director at Compass Group. “The team has continued to provide best-in-class solutions to an ever-growing list of premier customers in the healthcare and life sciences markets and we couldn’t be more excited for the future of Allied.”
Atlantic Street acquired Lab Logistics through its third fund in January 2018 and has now completed five add-on acquisitions including the past buys in 2018 of Hospital Couriers from Copley Equity Partners and Path-Tec from Fulcrum Equity Partners.
“The acquisition of The Allied Group reflects our desire to grow and invest in the Lab Logistics platform and specifically our product and kitting offering,” said Andy Wilkins, a managing partner at Atlantic Street. “This is a key piece in achieving our vision of building a world-class organization and we are actively seeking other complementary add-on acquisitions to round out our products and service portfolio.”
Atlantic Street invests from $15 million to $40 million in middle-market companies with EBITDA from $4 million to $15 million. The firm invests across a range of sectors but has a specific interest in healthcare, multi-unit retail, business services, and consumer products and services. The firm closed its fourth fund, Atlantic Street Capital IV LP, with $500 million of committed capital in September 2019. Atlantic Street was founded in September 2006 by Peter Shabecoff and is based in Stamford, Connecticut with an additional office in West Palm Beach, Florida.
Compass Group Equity Partners invests up to $50 million of equity in companies that have enterprise values of $10 million to $100 million and EBITDA of $2 million to $12 million. Sectors of interest include niche manufacturing, distribution, business services, and consumer services. Compass Group was founded in 2014 and is headquartered in St. Louis.
© 2022 Private Equity Professional | June 17, 2022
