Pharos Capital Group has sold TechLab to SSI Diagnostica, a portfolio company of Adelis Equity Partners
Founded in 1989, TechLab, Inc. is a leading developer and manufacturer of diagnostic products. The company has a portfolio of diagnostic tests for infectious disease and enteric disease testing sold directly to end users through distributors and their direct sales force. TechLab also performs diagnostics and life science contract manufacturing and services. The company is headquartered in Blacksburg, Virginia and manufactures its diagnostic tests in the United States at its state-of-the-art manufacturing facility in Radford, Virginia. For more information, please visit www.techlab.com.
Lincoln International acted as a long-term partner and exclusive financial advisor to TechLab, providing guidance to the company throughout Pharos Capital Group’s hold period and ultimately the sale process. This included providing insights to the company on the market landscape and buyer universe as the commercial strategy evolved. Lincoln leveraged its deep industry knowledge of the diagnostics market and global reach to achieve a cross-border outcome for the TechLab shareholders.
Adelis will combine TechLab with its existing portfolio company SSI Diagnostica, a developer and manufacturer of diagnostics products based in Copenhagen, Denmark. SSI Diagnostica’s global distribution network and production capability will complement TechLab’s U.S. and global operations to grow the scale of the combined companies’ diagnostics business. TechLab will continue to operate out of its Virginia research and development (R&D) and manufacturing facilities and will retain its workforce subsequent to the transaction. TechLab’s existing management team will remain with the company.
Tony Crisman, Managing Director in Lincoln’s Healthcare Group, commented, “It was a privilege to work with the Pharos and TechLab teams in optimizing their commercial strategy and identifying the right partner for continued growth. There is a strong scientific alignment between TechLab and SSI Diagnostica, centered around R&D excellence and synergistic sales channels, which will ensure continued success as a best-in-class provider of diagnostic testing solutions globally.”
Based in Dallas and Nashville, Tennessee, Pharos is a physician-founded investment firm focused on growing healthcare companies that aim to lower the total cost of care, improve patient outcomes and expand access to care in underserved communities. Since its inception, Pharos has invested in 57 companies and has more than $1.2 billion of private equity (PE) assets under management. Pharos typically invests $25 to $50 million in rapidly growing middle market companies seeking later stage funding for internal growth, acquisitions, leveraged buyouts, management buyouts or recapitalizations predominantly across healthcare sectors. For more information, please visit www.pharosfunds.com.
SSI Diagnostica was independently established in 1998, before which it was part of the Danish Statens Serum Institut, founded in 1902. SSI Diagnostica is now one of the leading innovation, production, and distribution companies within in-vitro diagnostic products. In 2020, the company significantly expanded its rapid testing business by acquiring CTK Biotech, based in San Diego. The company has an ambition and strategic plan to continue its international expansion within its four business areas: 1) disease prevention, 2) rapid screening, 3) precision testing and 4) microbiology lab solutions.
Adelis Equity Partners
Adelis is a growth partner for well-positioned, Nordic companies. Adelis partners with management and / or owners to build businesses in growth segments and with strong market positions. Since raising its first fund in 2013, Adelis has been one of the most active investors in the Nordic middle market, making 35 platform investments and more than 150 add-on acquisitions. Adelis today manages approximately €2.5 billion in capital. For more information, please visit www.adelisequity.com.
Lincoln has acted as a long-term partner alongside TechLab with thoughtful industry perspectives and process acumen. Lincoln was helpful in advance of our sale process as they were able to provide substantial value-added considerations to our business and strategy. This continued as they were instrumental in helping us find the right next partner for growth for the TechLab platform.
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