Strata acted as exclusive financial adviser to LGC on the acquisition of KBioscience

Transaction Summary

Advised LGC on the acquisition of KBioscience to create a market leader in genomic services and solutions

Transaction Overview

• Strata acted as exclusive financial adviser to Bridgepoint-backed, international lab testing group LGC on the combination of LGC’s Genomics division with leading single-plex genotyping solutions provider KBioscience by way of acquisition to create a market leader in genomic services and solutions

• The transaction enabled LGC to transform the smallest of its four divisions into a differentiated international genomics products and services business with strong growth prospects and attractive margins

• The founders of KBioscience remain partners and significant shareholders in the enlarged business alongside LGC

• LGC was acquired by funds managed by Bridgepoint for some £257 million in February 2010

Transaction Rationale

• Highly complementary services, products and customers in adjacent areas of the genomics market
  • LGC expertise in high throughput / automated sequence analysis for discovery
  • KBioscience expertise in bespoke / low to medium throughput genotyping
  • Similar highly scientific cultures and premium quality reputations
  • Enables the provision of broader but complementary suite of services and solutions to an enlarged customer base

• Limited geographic overlap
  • KBioscience strong in UK and North America
  • LGC strong in Continental Europe and Asia

• LGC benefits from entrepreneurial culture and cost / client service focus of KBioscience
  • KBioscience benefits from LGC’s global network and administrative resources
  • Access to capital to drive sector consolidation
  • Critical mass to resource future R&D strategy