MTS Health Investors has sold its portfolio company DNA Diagnostics Center to GHO Capital for $110 million.
DNA Diagnostics Center (DDC) offers DNA testing services for paternity and other family relationships, forensics, cell line authentication, and ancestry. DDC receives more than 800,000 consumer calls each year, and will perform over 750,000 DNA tests in 2015. The company was founded in 1995 and is based north of Cincinnati in Fairfield, OH (www.dnacenter.com).
“The exceptional support and commitment provided by MTS was instrumental to our success. Their partnership afforded us with the necessary resources to create a premier, global organization in the testing space that has become known for our best-in-class testing capabilities and reputation,” said DDC President and CEO, Peter Vitulli.
DNA Diagnostics Center is one of the world’s largest providers of private DNA testing services. “It has been exciting and rewarding to partner with the DDC management team as they have executed on their growth strategy over the past few years,” said MTS Managing Director Alex Buzik. “We are thankful for the opportunity to work with such high-caliber executives to cement DDC’s market leading position in the private DNA testing market and position the company for continued success.”
MTS Health Investors specializes, as their name would imply, in investing in companies within the healthcare industry. Sectors of specific interest include providers of direct medical services to patients in an institutional, ambulatory, or home setting; providers of managed care and other healthcare insurance services; distributors of medical products; and manufacturers of low-technology medical devices and supplies. MTS Health is based in New York with an additional office in San Francisco (www.mtspartners.com).
The buy of DNA Diagnostics Center is the first acquisition for GHO Capital, which was founded in 2014 and closed on its first fund in June 2015 with €400 million of capital commitments. The firm makes investments in specialty pharma, generics, animal health, over-the-counter and wellness businesses, medical devices and diagnostics. GHO Capital Partners is headquartered in London (www.ghocapital.com).
Mike Mortimer, Executive Partner and Founder, and Dr. Mark Braganza, Executive Partner, led the transaction for GHO Capital. “The field of genetic diagnostics is an attractive, high growth segment within healthcare and, as a well-established business with significant global potential, DDC is an excellent fit for GHO Capital’s investment strategy. GHO Capital has a deep understanding of diagnostics and clinical laboratories which, combined with our European presence and international networks, provides strong foundations for our alliance with the DDC team,” said Mr. Mortimer.
DDC has been recording double-digit growth in recent years and according to CEO Peter Vitulli the company is poised for continued expansion in Europe and internationally. “We have found a differentiated, specialist partner in GHO Capital and we look forward to working together on the next phase of DDC’s continued growth.”
Deloitte (www.deloitte.com) provided corporate finance advisory services to GHO Capital and Goldman Sachs Specialty Lending Group (www.gs.com) provided debt financing for the transaction. Ropes & Gray (www.ropesgray.com) provided legal advice to GHO Capital. Robert W. Baird & Co. (www.rwbaird.com) served as the financial advisor to DDC and MTS. Legal services were provided to DDC and MTS by Hogan Lovells (www.hoganlovells.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-13-15