Audax Private Equity has completed the sale of Chesapeake IRB – a provider of institutional review board services for human subjects in clinical trials – to Linden Capital Partners. Audax acquired the company in May 2013.
Chesapeake IRB provides its legally-mandated IRB services to pharmaceutical, biotech, and medical device companies; contract research organizations; institutions; and academic medical centers. The company is accredited by the Association for the Accreditation of Human Research Protection Programs. Chesapeake IRB is headquartered in Columbia, MD (www.chesapeakeirb.com).
During Audax’s term of investment the company completed three add-on acquisitions which expanded Chesapeake’s market share and geographic reach across the United States and Canada. “Audax’ continued support and expertise in executing its buy and build strategy was extremely valuable as we expanded our market share and geographic reach over the past three years,” said Jeff Wendel, President & CEO of Chesapeake.
“Jeff Wendel and the Chesapeake team have done a tremendous job in building a differentiated market leader in the IRB space through acquisitions and organic growth,” said Geoffrey Rehnert, Co-CEO of Audax Group.
The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).
Linden Capital Partners – the buyer of Chesapeake IRB – is focused exclusively on leveraged buyouts in the healthcare and life science industries. Linden’s strategy is based upon three elements: healthcare and life science industry specialization; integrated private equity and operating expertise; and strategic relationships with large corporations.
In March 2015, Linden closed its third private equity fund, Linden Capital Partners III, LP at the oversubscribed hard cap of $750 million. The original target for the new fund was $600 million. Fundraising for the new fund took less than 3 months. Linden closed its first fund of $200 million in 2005 and its second fund of $375 million in 2010. The firm is based in Chicago (www.lindenllc.com).
Goulston & Storrs served as legal counsel to Audax. Houlihan Lokey advised Chesapeake and Audax. Kirkland & Ellis served as legal counsel to Linden.
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-6-16