Canadian private equity firm Clairvest Group has agreed to sell its interest in Lyophilization Services of New England Inc, a contract manufacturing organization that provides lyophilization services to the biotech, pharmaceutical and medical device industries. Clairvest, which in 2008 acquired a minority stake in Manchester, New Hampshire-based LSNE, said it expects to realize sales proceeds of about $80 million. That compares against the $48.9 million value estimated for the company in December. LSNE will be bought by an affiliate of European private equity firm Permira. The deal is expected to close before the end of June.
TORONTO, ON–(Marketwired – March 27, 2017) – Clairvest Group Inc. (TSX: CVG) (“CVG”), together with Clairvest Equity Partners III Limited Partnership (“CEP III”, collectively “Clairvest”), announced today that it has entered into an agreement to sell its interest in Lyophilization Services of New England, Inc. (“LSNE”) to a company backed by the Permira funds. LSNE CEO Matt Halvorsen will remain a shareholder, rolling equity alongside Permira. The proposed transaction is expected to close during the quarter ended June 30, 2017 after satisfaction of customary closing conditions, including notification requirements under applicable U.S. antitrust laws.
Should the transaction close on anticipated terms, Clairvest and CEP III expect to realize sale proceeds of approximately US$80 million, versus a fair value of US$48.9 million at December 31, 2016.
While all parties involved have a strong desire to complete the sale, there can be no guarantee that the transaction will be completed, or if it is completed, that it will close within the anticipated time period.
Wells Fargo Securities served as exclusive financial advisor to LSNE.
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.