Vance Street Capital has acquired Prince Sterilization Services, a provider of contract medical device sterilization services. This acquisition marks Vance Street’s second Fund IV platform and its 15th investment in the life sciences and medical sector.
Prince offers a range of sterilization services, including steam, dry heat, vaporized hydrogen peroxide (VHP), depyrogenation (the removal of fever-causing substances), and water for injection (WFI) rinsing. The company also supplies ready-to-use (RTU) drug containment products, such as vials, bottles, stoppers, and seals.
Prince’s VHP service utilizes a low-temperature antimicrobial vapor for decontaminating and sterilizing enclosed spaces, surfaces, and medical devices, effectively destroying microbial life. In January 2024, the FDA classified VHP as an “Established Category A” sterilization method for medical devices, underscoring its safety and effectiveness. Prince’s WFI product, a highly purified and sterile water, is used in the pharmaceutical industry for producing injectable drugs and rinsing medical devices.
Prince serves a diverse customer base, including pharmaceutical, biotechnology, compounding pharmacy, and medical device companies. The company, founded by Dr. Daniel Prince, who serves as CEO, is headquartered in Pine Brook, New Jersey, near Newark, with an additional facility in Fairfield. Dr. Derek Prince, the founder’s son, is the company’s president. Under the partnership with Vance Street, Daniel and Derek will retain significant ownership in Prince and will continue managing daily operations.
“The Prince family has built a terrific organization, and we look forward to supporting their continued growth,” said Steve Sandbo, a partner at Vance Street. “Prince’s focus on eco-friendly sterilization services and products across the pharmaceutical and medical device markets is a great fit with our past investing experience. We are excited to partner with Prince to support the ongoing buildout of additional capabilities and capacity to serve their growing customer base.”
“We are excited about the next chapter of growth and our partnership with Vance Street. Their support will enable us to expand our capabilities and offerings and maintain our commitment to providing innovative and reliable sterilization solutions to our valued customers,” said Derek Prince.
This acquisition is the second platform investment for Vance Street’s Fund IV, following the September 2024 acquisition of Pro-Vision, a Michigan-based provider of video monitoring products and services for commercial, K-12 transit, and public safety sectors. Vance Street’s fourth fund closed at its hard cap of $775 million in May 2024.
“Prince is a great representation of our strategy of partnering with founder-owned businesses in critical markets, such as pharma, biopharma, and medical devices. We are excited to support Prince’s management in developing new growth opportunities, including broadening their product portfolio and services to meet an evolving market’s needs,” said Grady Miller, a principal at Vance Street.
Vance Street, headquartered in Pacific Palisades, Los Angeles, makes control investments in North American companies with enterprise values between $30 million and $350 million and EBITDA of $3 million to $30 million. Key sectors include medical technology, life sciences, industrial technology, and aerospace & defense.
Capstone Partners served as the financial advisor to Prince, and Paul Hastings provided legal advisory to Vance Street. Debt financing for the transaction was provided by Apogem Capital and Bank of Montreal.
© 2024 Private Equity Professional | November 14, 2024
