Private equity firm Permira announced today that it will acquire Lyophilization Services of New England (LSNE), a contract developer and manufacturer in both the pharmaceutical and medical device industries.
Permira is buying the company in partnership with management. LSNE founder and CEO Matt Halvorsen will still hold a significant equity stake in the company and will continue to lead the company.
Financial terms of the deal were not disclosed. Permira and LSNE officials expect the deal to close in the second quarter of 2017, pending customary closing conditions.
The deal is but the latest example of how robust the M&A environment is among medical device companies and the contract manufacturers that support them.
Started in 1997, LSNE (Manchester, N.H.) is a contract developer and manufacturer specializing in aseptic fill/finish and lyophilization services.
“We have been attracted to opportunities that benefit from the strong outsourcing trends across the healthcare industry and the underlying demand growth, in this case supported by continued growth for biologic medicines. With a strong leadership team and unique capabilities, LSNE is ideally positioned to capitalize on industry trends and expand its market position,” said Mubasher Sheikh, partner at Permira and head of itsGlobal Healthcare Group, in a news release.
As part of the transcaction former CMS Biologics CEO Claes Glassell will join LSNE as board chair. Glassell has 30 years of experience in the pharmaceutical industry.
The Permira investment will support the expansion of LSNE’s capacity to meet the demands of a growing customer base. The money will also support extending the company’s capabilities and the pursuit of selective acquisitions.
“The investment is a strong endorsement for LSNE and our highly talented workforce, and we look forward to taking advantage of the unique perspective and industry insight that the Permira funds will bring,” Halvorsen said.
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