Linden Capital snaps up Arsenal’s BioIVT

The Chicago firm adds to an already busy year of healthcare dealmaking with an $800m-plus deal for the global provider of biological specimens and value-added services.

Linden Capital Partners, one of healthcare’s most active investors, has agreed to acquire BioIVT in its latest pharma services bet, according to three people with knowledge of the deal. 

The transaction values BioIVT, a provider of research models and services for drug and diagnostic development, north of $800 million, some of the sources said. 

That implies an upper-teens deal multiple, based upon the $45 million to $50 million in 2021 EBITDA sources quoted. 

Concluding a Jefferies-run sale process, the deal was signed about a week ago and is expected to close in the next 30 days, some of the people said. 

Existing investor Arsenal Capital Partners will roll equity in the deal to remain invested. Arsenal, which invests in healthcare and industrials companies, bought the Westbury, New York-headquartered company from Thompson Street Capital Partners in January 2016. 

Linden and Jefferies declined to comment, while Arsenal and BioIVT did not return PE Hub‘s requests for comment on Tuesday.

BioIVT, formerly BioreclamationIVT, is a global provider of high-quality biological specimens and value-added services. It specializes in control and disease state samples including human and animal tissues, cell products, blood and other biofluids. Its portfolio of clinical specimens supports precision medicine research and the effort to improve patient outcomes by coupling comprehensive clinical data with donor samples, according to its website.

During Arsenal’s more than five-year hold and under the leadership of CEO Jeffrey Gatz, BioIVT has “scaled nicely” through both strong organic growth initiatives and M&A, as one source put it. 

BioIVT bought Tissue Solutions, a virtual biobank based in Glasgow, UK; and Valley Biomedical Products & Services, a Winchester, Virginia-based provider of specialized biological products and services, in July and June, respectively. Another 12 acquisitions are listed on the company’s website. 

For Linden, a healthcare-exclusive private equity firm based in Chicago, the acquisition adds to an already busy year both on the buy-side and sell-side.

In recent acquisitions, Linden agreed to buy RQM+, winning a robust sale process for a full-service regulatory and quality consulting firm focused on the medical device and diagnostics industries. The deal for RQM+ commanded a total enterprise value of $385 million, sources familiar with the matter told PE Hub in July. In January, Linden alongside Audax Private Equity snapped up StatLab, a supplier of consumable items that are used to diagnose cancer and infectious diseases.

In recent exits, Linden in July announced the sale of Flexan to ILC Dover. Flexan is an outsourced manufacturer of high-precision silicone, thermoplastic and specialty rubber components primarily for medical device original equipment manufacturers. Linden, meanwhile, is also currently exploring a sale of Smile Doctors, the country’s largest and fastest-growing orthodontics-focused dental services organization, sources first told PE Hub in July. 

Other notable partial exits include the public listing of HydraFacial, an aesthetic skin health specialist, through a $1.1 billion merger with Vesper Healthcare Acquisition Corp. The combined entity, The Beauty Health Company, began trading on Nasdaq in May.

Arsenal’s recent platform activity in healthcare includes its November acquisition of Best Value Healthcare, a primary care provider focused on Medicare Advantage. In notable exits, Arsenal sold TractManager to Clearlake Capital-backed Symplr in October in a deal valued north of $500 million, PE Hub wrote.