- Northlane, American Capital spin-out, invested in Science Care in 2016
- Phoenix-based company generated $20 mln in 2018 adj. pro forma Ebitda
- Science Care sources and sells donated non-transplant human tissue to support medical advancements
Northlane Capital Partners is evaluating the sale of Science Care, a company that collects and distributes non-transplant body parts for medical research and surgeon training, according to four sources.
Piper Jaffray has been engaged to offer sell-side financial advice on the sales process, the sources said.
Phoenix, Arizona-based Science Care posted $20 million of adjusted Ebitda in 2018 on revenues a little north of $50 million on a pro forma basis, according to another source.
Marketing materials were sent out in December, according to one of the sources, while another noted that indications of interest have been submitted.
One of the sources deemed a sale to a financial sponsor the most likely outcome, though cautioned that there could exist a wild card strategic buyer despite there lacking an obvious medtech acquirer.
Northlane’s investment in Science Care dates to 2016. The Bethesda, Maryland, firm spun out from American Capital in January 2017, inheriting Science Care through the middle-market buyout fund, ACE II.
Founded in 2000, Science Care is the world’s largest non-transplant human tissue (NTHT) bank.
The company sources human tissue from bodies that are voluntary donated across the U.S., facilitating the distribution to medical device companies, training and research organizations and medical schools.
The donated human tissue is not used for transplants or organ donations. Rather, physicians and surgeons use the human body parts for training purposes. In addition, the donated cadavers enable the development and advancement of new medical products, procedures and treatments such as Alzheimer’s disease, cancer, multiple sclerosis and hip replacement surgery.
Science Care’s donation program also offers individuals an affordable alternative to a more traditional burial or cremation. Besides paying for body transportation and filing of the death certificate, Science Care offers cremation free-of-charge and returns tissue not used for medical advancement to the family.
Led by CEO Brad O’Connell, Science Care has six locations in Arizona, California, Colorado, Florida, Illinois, Pennsylvania, plus a seventh poised to open in Texas.
Northlane makes control investments in North American middle market companies in healthcare and business services. It’s existing healthcare portfolio includes Advarra, Firma Clinical Research and PAR Excellence Systems.
Representatives of Northlane, Science Care and Piper Jaffray did not return requests for comment on Monday.
Action Item: Reach out to Northlane Partner and head of IR, Justin Dufour , at firstname.lastname@example.org