Cressey & Co is evaluating the sale of Statlab, a supplier of consumable items that are used to diagnose cancer and infectious diseases, according to people familiar with the matter.
Indications of interest from potential private equity bidders were submitted last week, sources said. Baird is engaged as a sell-side adviser on the process.
For Cressey, the process comes close to three-and-a-half years into its investment. The healthcare-focused private equity firm completed a growth equity investment in the business in June 2017, assuming a majority stake. Cressey’s investment provided an exit for Prairie Capital.
StatLab, based in McKinney, Texas, provides over 3,500 histology, cytology and other consumable supplies to the anatomic pathology and molecular diagnostic markets.
The business through the pandemic has also expanded into PPE supplies, covid-19 collection goods such as swabs and transport medium, as well as hand sanitizer and disinfectants.
Statlab projects approximately $30 million in pro forma adjusted EBITDA for 2020 alongside $105 million in net revenue, sources told PE Hub.
Discluding covid-related products that Statlab got into this year, its core business is viewed to be around the low $20 million range, one of the people added.
Partly given that dynamic, it remains too early to say where a likely value will pan out as sponsors need to work to really understand the numbers and Statlab’s true organic growth, one person said.
Cressey, based in Chicago and Nashville, focuses on investments in healthcare services, providers, facilities and information technology.
The firm in June 2018 closed Fund VI at $995 million alongside a $105 million co-investment vehicle.
Cressey and Baird did not return PE Hub‘s requests for comment. The company could not immediately be reached.