Linden makes ~4x its money on SeraCare sale

  • Linden took SeraCare private for ~$82 mln in February ’12
  • KKR investment in LGC dates to December ’15
  • Sell-side adviser: Cain Brothers

Linden Capital Partners generated an about 4x return through its sale of SeraCare Life Sciences, according to a source familiar with the matter.

KKR said earlier this week it would buy SeraCare, a supplier of biological products to the diagnostics industry, through its portfolio company LGC North America.

Financial terms of the transaction weren’t disclosed; a separate source placed valuation within the $200 million to $250 million range.

Cain Brothers offered sell-side advice on the transaction.

Led by CEO Charlie Mamrak, SeraCare provides reference materials and quality controls for infectious-disease testing by diagnostic companies and clinical labs. The Milford, Massachusetts, company is known as a leading partner to global in vitro diagnostics manufacturers.

Linden, a healthcare-focused private equity firm, took SeraCare private for about $82 million in February 2012.

The Chicago firm came close to exiting its investment in SeraCare once before, having retained Barclays to advise on a sales process a couple years back, the sources said.

KKR, for its part, purchased LGC from Bridgepoint in December 2015 through KKR European Fund IV.

Financial terms weren’t disclosed, but the competitive auction for LGC was anticipated to command more than 600 million pounds ($766.6 million), Reuters had reported.

LGC, a life sciences measurement and testing company, not only serves the pharmaceutical, agricultural biotechnology and diagnostics end-markets but has customers in the food, environment, government and academic sectors.

Linden in May collected $1.5 billion for Fund IV, surpassing its $1.25 billion target.

The buyout firm in May purchased Evolution Research Group, a clinical research site services company focused on central nervous system studies. Linden in June acquired Solara Medical Supplies, the largest independent distributor of glucose monitors and other diabetes products.

Action Item: Reach LGC at +44 20 8943 7563