Lafayette Instrument, a Branford Castle Partners portfolio company, has acquired the Alzet Osmotic Pump product line from publicly traded DURECT Corporation for $17.5 million.
Alzet Osmotic Pumps are miniature, implantable devices designed for preclinical studies to deliver precise, continuous doses of pharmaceuticals, peptides, and hormones to mice and other lab animals. These pumps operate without external connections or frequent handling, delivering drugs, hormones, and other agents at controlled rates for durations ranging from one day to six weeks.
Alzet Osmotic Pumps are widely used in research applications, including drug discovery, preclinical toxicology, pharmacokinetics, physiology, neuroscience, and cancer studies.
This acquisition strengthens Lafayette’s capabilities in infusion pump technology and solidifies its position in the preclinical research sector. “Alzet osmotic pumps are a great addition to our life science instruments. We look forward to continuing a shared legacy of premier products that support life-changing research,” said Benjamin Mangrich, the CEO of Lafayette.
Lafayette is an Indiana-based maker of polygraph equipment and other scientific instruments. The company’s polygraph products, first introduced in 1972, include software and algorithms, computers, heart rate monitors, headsets, arm cuffs, electrodes, and activity sensors. These products are widely used by federal, state, and local law enforcement and security agencies. According to Lafayette, it has sold more polygraph and credibility assessment instruments to private examiners, government, and military organizations than any other manufacturer globally.
Lafayette also provides neuroscience products such as mouse and rat activity systems and mazes, test and sleep deprivation chambers, and touch measurement systems to both public and private research laboratories. Founded in 1947 by Max Wastl, Lafayette is headquartered in Lafayette, Indiana, approximately 60 miles northwest of Indianapolis.
The Alzet acquisition marks Lafayette’s third add-on acquisition since its purchase by Branford Castle in April 2021. Previous acquisitions include Aurora Scientific, a Toronto-based manufacturer of life sciences instrumentation, in April 2023, and Actimetrics, an Indiana-based provider of instruments for circadian biology and animal behavior research, in November 2023.
The life sciences instrumentation market is projected to grow at a compound annual growth rate of 6.8% through 2030, driven by advances in biotechnology and the growing demand for precision research tools. Infusion pump technologies, such as those offered by Alzet, are expected to benefit significantly from these trends due to their essential role in preclinical research and drug development.
“This acquisition provides Lafayette with the opportunity to increase its product offering to existing and new life sciences customers,” said Ceon Francis, a managing director at Branford Castle. “We are excited to work with the Lafayette management team to continue to support the company’s future growth.”
Branford Castle Partners invests in companies with revenues of at least $10 million and EBITDA between $1.5 million and $15 million. Its sectors of interest include industrials, specialty manufacturing, consumer products, commercial distribution, business services, and logistics. The firm, led by President John S. Castle and Managing Partner David Castle, is headquartered in New York City with an additional office in Boca Raton, Florida.
DURECT Corporation (NASDAQ: DRRX) is a biopharmaceutical company focused on developing epigenetic therapies that restore regular gene activity by targeting the “switches” controlling gene expression without altering DNA. The company, led by CEO James Brown, is headquartered in Cupertino, California.
Aquilo Partners, a life sciences-focused investment bank with offices in San Francisco, Boston, and New York City, served as the financial advisor to DURECT Corporation. Senior debt financing for the transaction was provided by Byline Bank, with mezzanine debt from Brookside Capital Partners.
© 2024 Private Equity Professional | December 3, 2024
