European private equity firm Cinven today announces that it has entered into exclusive negotiations with a consortium led by Montagu Private Equity and Astorg Partners for the sale of Sebia ('the Company'), the in-vitro diagnostics protein testing business, for an undisclosed consideration. The transaction will generate a 2.4x return on Cinven's original investment.
During Cinven's ownership and under CEO Benoit Adelus' team leadership Sebia has expanded its operations into the US and emerging markets resulting in significant revenue increase comprising 21% and 23% of total revenue respectively. As a result of the growth initiatives undertaken, Sebia is now a clear global leader within the in-vitro diagnostics market.
The Company also launched major products such as a diabetes test and is in the process of launching a new generation of Capillary instrument - which provide strong future earnings growth.
The Cinven Healthcare team had previously invested in the in-vitro diagnostics sector through Phadia, the in-vitro diagnostics allergy testing business, in 2007 which was subsequently sold to Thermo Fisher Scientific, Inc. in 2011 generating a 3.4x multiple on Cinven's original investment. This previous experience combined with Cinven's strong network in the French market, enabled Cinven to originate and invest in Sebia.
Nicolas Paulmier, Partner at Cinven, commented:
"Our investment in Sebia illustrates clearly our 'repeat play' investment strategy. Our Healthcare team had invested in Phadia, a highly successful in-vitro diagnostics business. This provided us with the industry knowledge and insight to enable our French and healthcare teams to then identify the Sebia opportunity, back a fantastic management team and invest subsequently in the business. Our investment strategy for Sebia was the same as the one we had already successfully implemented at Phadia, focused on US expansion, emerging market growth, and a game changing new product launch. We wish Benoit and his team at Sebia every success under new ownership as the Company embarks on its next phase of growth."
"Our realisation of Sebia in France follows the highly successful realisation of Numericable earlier this year initially through an IPO and then the deal with SFR, generating an IRR of 160%."
Benoit Adelus, Chief Executive of Sebia, commented:
"Cinven's previous experience in the field of in-vitro diagnostics, through their investment in Phadia, contributed to establish a very good relationship. During Cinven's shareholding we got their full support to enter new areas such as diabetes and to strengthen our positioning worldwide."
Completion of the transaction is subject to consultation with Sebia's Works Council and satisfactory clearance from relevant competition and regulatory authorities.
Latham & Watkins acted as exclusive advisor to Cinven.