Spectris sees Malvern Panalytical synergies after deal

Spectris has acquired Concept Life Sciences for £163m from a private equity group.

The instrumentation and controls company said the deal, on a debt and cash-free basis, will be met from existing cash and bank facilities.

Concept Life Sciences provides drug discovery, development, analytical testing and environmental consultancy services to international customers in the pharmaceutical, biotechnology, agrochemical and environmental sectors.

It also does development and analytical services for the food, consumer and environmental industries.

Spectris said the deal adds test service capabilities to its’ Materials Analysis segment where it has synergies with Malvern Panalytical, especially in the pharmaceutical and agrochemical markets.

These markets are expected to continue to grow due to increasing regulation, complexity of pharmaceutical R&D and investments in new therapies, particularly protein-based pharmaceuticals, added the company.

John O’Higgins, chief executive of Spectris, said: “Concept Life Sciences is a high-quality services business which further strengthens our portfolio and enhances our ability to provide customers within the pharmaceutical, life sciences and advanced materials sectors with a combined product and service proposition.”

700 staff across 11 labs

The company was formed in July 2014 with backing from mid-market private equity firm Equistone Partners Europe.

Investment provided the business with a platform to make acquisitions and develop into a contract research and testing organisation focused on the life sciences sector.

Gross assets of Concept Life Sciences at December 2016 were £73.4m and pro-forma EBITDA was £9.3m. The firm had pro-forma revenue (including the full-year impact of acquisitions) of £48.7m in the year ending December 2017.

It employs more than 700 staff, including 500 scientists working across 11 laboratories.

Michael Fort, executive chairman at Concept Life Sciences, said: “It has been an exciting journey and we have successfully strengthened our capabilities across the agrochemical, environmental and life sciences sectors, as well as entering new markets in Europe and the US.

“This puts us in a strong position for future growth and we are delighted to become part of the wider Spectris business.”

Steve O’Hare, senior partner at Equistone Partners Europe, said integration with Spectris will support the company’s strategy during its next phase of development.

“The team has achieved consistently strong growth over the last three years through both organic growth with new and existing service offerings supported by strategic acquisitions.”