Halifax-based Precision BioLogic, one of the oldest life sciences companies in Atlantic Canada, has been acquired by the Swedish private equity firm Procuritas Capital Investors for an undisclosed sum.
The companies issued a statement late last week saying Stockholm-based Procuritas, a mid-market PE fund, had acquired Precision Biologic and its Ancaster, Ont., subsidiary Affinity Biologicals, which Precision acquired in 2018.
Procuratis has previously purchased more than 45 companies, mainly in the Nordic region, with a total purchase value of more than 12 billion Swedish krona, or C$1.6 billion. The acquisition was made by the firm’s seventh fund, which had an initial value of €407 million, or C$600 million.
The statement described the relationship between acquirer and acquired as a “partnership”, suggesting the Precision team will continue to grow the company.
“We are excited to team up with Procuritas for the next step in our growth journey,” said Precision President and CEO Paul Empey. “Believing in innovation through collaboration, this partnership opens new possibilities for us to expand our reach, accelerate progress, and make an even greater impact in the field of coagulation diagnostics.
“We see many new opportunities ahead while continuing our mission to drive diagnostics forward and improve lives worldwide.”
Founded in 1983, Precision BioLogic is a niche player in the coagulation diagnostics market. It focuses on reagents and frozen plasmas that have been cleared by the U.S. Food and Drug Administration and are intended for the North American and European markets.
The company’s customers include key reference laboratories, hospitals, treatment centers and research groups. It directly serves over 1,000 clinical laboratories throughout North America and has a network of distributors in Europe.
“Precision has created value through collaborative relationships with our people, our customers, and our partners across the industry,” said Michael Scott, an early investor who served as CEO for two decades. “We know Procuritas shares these same values – so this change of ownership feels like a good landing spot for everyone.”
Precision said it has launched a number of successful diagnostics products in recent years and is active in a growing market, supported by long-term trends such as aging populations, emerging new therapies, and increased access to healthcare around the globe.
In 2018, Precision made its largest deal to date by acquiring Affinity Biologicals, which is active in hemostasis research. It also serves original equipment manufacturers, and provides custom products and services.
Procuritas, the new owner, is a private equity firm, which differs from a venture capital firm in that PE funds tend to take majority stakes in mature companies that produce strong cash-flow. Two years ago, Procuritas bought Nordic Biomarker, a leading Swedish provider of coagulation diagnostics assays – a market that meshes nicely with Precision BioLogic’s.
“We have kept a keen eye on Precision BioLogic for a while, and are impressed by the company’s excellent market reputation, high-quality reagents and R&D capabilities,” said Johan Conradsson, Co-Managing Partner at Procuritas. “We also see great potential in the coagulation diagnostics industry, which is supported by long-term underlying trends such as increased access to healthcare, development of new therapies, and an aging population.”