lab equipment

Graham Sells Lab Equipment Maker to Harbour

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Graham Partners has sold SP Industries, a designer and manufacturer of scientific equipment and labware, to the Harbour Group. Graham Partners acquired SP Industries in March 2011 from Riverlake Partners.

SP Industries (SP) is a designer and manufacturer of laboratory equipment, pharmaceutical manufacturing products, laboratory supplies and instruments, and specialty glassware. SP’s products – the company has more than 20,000 SKUs – are sold to the pharmaceutical, scientific research, industrial, aeronautic, semiconductor and healthcare markets. The company’s brands are distributed globally under the Hull, VirTis, FTS, Genevac, Hotpack, Bel-Art, H-B Instrument and Wilmad-LabGlass brands. SP is headquartered in the Philadelphia suburb of Warminster, PA, and has 9 manufacturing facilities and 3 service centers in the US and in the UK (www.spindustries.com).

SP Industries is led by its William Downs, president and chief executive officer. “Graham’s operational background and expertise, coupled with its network of experienced industry professionals, has helped the company advance into a successful business poised for long-term growth,” said Mr. Downs.

During Graham’s term of ownership, SP’s EBITDA increased by 55%, driven by a combination of new products, two add-on acquisitions, and cost savings efforts such as the consolidation of operating facilities, renegotiating existing leases, and establishing lean manufacturing techniques. Several million dollars in annual cost savings were realized during Graham’s ownership.

The two add-on acquisitions were the buys of Bel-Art Products in July 2014 and Stability Environments in January 2015. Bel-Art is a maker of laboratory products such as safety wash bottles, fume hoods, thermometers, racks, and desiccators (www.belart.com) and Stability Environments makes walk-in environmental rooms, glassware dryers and accessory products (www.stabilityenv.com).

Graham Partners acquires companies with EBITDA between $5 million and $50 million, and will invest in smaller companies as add-on acquisitions to existing portfolio companies. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsourced manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).

Harbour Group intends to accelerate SP’s new product development, geographical expansion and acquisitions programs. “SP’s brand strength, breadth of product and in-house manufacturing capabilities fit very well with our experience in the manufactured products sector,” said Jeff Fox, Harbour Group’s chairman and chief executive officer.

Harbour Group and its companies are engaged in manufacturing and distribution in multiple industries, including flow and energy measurement, boiler systems, professional diagnostic and repair tools, specialty LED systems, niche distribution, logistics services, decorative kitchen and bath hardware, abrasives, diamond-cutting products and related tools, entertainment and music products, and auxiliary plastic processing equipment.  Since its founding in 1976, Harbour Group has acquired 180 companies in 38 different industries. The firm is based in St. Louis (www.harbourgroup.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-11-15

Ampersand Acquires Protein Technologies

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Healthcare investor Ampersand Capital Partners has purchased Protein Technologies, a maker of equipment used in peptide synthesis instrumentation.

Peptide synthesis is the formation of a bond between two amino acids and usually refers to chains of up to 30-50 amino acids. When a chain gets especially long it turns into a protein. Peptides and proteins are used extensively by molecular biologists for research and product and drug development.

Protein Technologies designs, manufactures and supplies peptide synthesizers and reagents to academic and commercial researchers at universities, biotechnology and pharmaceutical companies.  The company was founded in 1985 by researchers affiliated with the University of Arizona and is headquartered in Tucson, AZ (www.ptipep.com).

Under Ampersand’s ownership, Nate Cosper, Ph.D., will continue to serve as President and CEO of the company.  “Ampersand’s acquisition strengthens our balance sheet, enabling our company to accelerate development of new products and enhance the level of service that we provide to our customers,” said Dr. Cosper.

The acquisition of the company by Ampersand provides the company with the capital base needed to expand the business and meet the needs of an increasingly global customer base.  “Protein Technologies is the recognized leader in a segment of the life sciences instrument market that is experiencing strong demand based on worldwide research interest in novel, peptide-based therapies,” said David Parker, General Partner at Ampersand.

Ampersand makes equity investments of $10 million to $30 million in healthcare related companies that have from $10 million to $100 million of revenue. Ampersand is typically the first institutional investor in founder-owned businesses.  Sectors of specific interest within healthcare include laboratory services; laboratory products; contract manufacturing; pharmaceutical services; and specialty pharmaceuticals. Ampersand is based in the Boston suburb of Wellesley, MA (www.ampersandcapital.com).

Square 1 Bank (www.square1financial.com) is providing working capital financing to Protein Technologies in tandem with the acquisition of the company by Ampersand.

© 2015 PEPD • Private Equity’s Leading News Magazine • 6-18-15