THL’s CSafe attracts private equity interest

  • Jeff Pepperworth appointed CEO of Dayton, Ohio company in March
  • CSafe competes with Sweden’s Envirotainer, which Cinven bought this summer for reported 1 bln-plus
  • THL recapped CSafe in Nov. ’16 alongside Altaris

Thomas H. Lee Partners-backed CSafe Global, which provides climate-controlled containers that ship temperature-sensitive drugs, has received inbound takeover interest from private equity firms, according to people familiar with the matter.

TH Lee engaged Piper Jaffray to provide financial advice to the Dayton, Ohio, company, the people said.

CSafe is in talks with sponsors, according to one of the people, who said indications of interest are expected to be submitted around the end of November.

Another source cautioned that there is no guarantee a deal will result.

One source pegged Ebitda in the mid-$20 million range.

CSafe produces, leases and services active and passive packaging that ensures vaccines, biological samples and drugs for clinical trials or pharmaceutical products are transported safely and at the right temperatures.

Its climate-controlled containers are leased for extended periods by airlines and freight forwarders.

Jeff Pepperworth joined CSafe as CEO in March 2018. His logistics and supply-chain experience includes executive and upper management roles at Inmar, Cleveland Clinic and UPS.

CSafe was founded in 1989 as Energy Storage Technologies.

THL’s investment in CSafe dates to November 2016. The Boston firm recapitalized the healthcare logistics company alongside existing investor Altaris Capital Partners.

CSafe is a direct competitor to the larger Envirotainer, which AAC Capital sold to European buyout firm Cinven. That July agreement reportedly valued the Swedish company at more than 1 billion euros ($1.1 billion).

Cinven, just a couple months later, sold an almost 25 percent stake in Envirotainer to Novo Holdings.

THL declined comment, while CSafe and Piper Jaffray didn’t return requests for comment.

Action Item: Contact CSafe’s Brad Jennings at bjennings@csafeglobal.com