Arch Sciences Group

Arch Sciences Group

We transformed Arch Sciences into a fast growing international consolidation platform, through investment in new laboratories and accretive aquisitions in new geographies.

Sector

Healthcare

Date acquired

November 2017

Deal type

Private sale

Website
Exit

July 2021 to a strategic buyer

Location

Scotland, UK

Overview

Arch Sciences is an independent provider of outsourced services and solutions to the laboratory research and testing sector. The Company’s business model combines specialist analytical testing with expert knowledge, training, automation and consumables, to offer leading pharmaceutical, research and laboratory testing providers an end-to-end service.

​Limerston Capital has been working on the lab testing market since 2016 leveraging on the experience of its operating partners. The market is attractive due to its limited exposure to the broader economy, high barriers to entry from the technical nature of testing and the opportunity for consolidation. We identified chromatography as an attractive niche with sound fundamentals and Arch Sciences (then Crawford Scientific) as a differentiated player which covered more than one product line. Following the initial approach Limerston was able to develop a strong relationship with the founder and the management team which ultimately lead to bilateral negotiations that resulted in the acquisition of Crawford Scientific.

We were attracted to the investment by the stability of the business, strong cash flow conversion and the opportunity for re-investing cashflows and accretive M&A in the fragmented UK and US market.

What we did and how we exited

Post-acquisition, we led an upgrade in management structure with a number of senior hires to lay foundations for growth.

We worked with the management to strategically focus on high margin end-markets and in 2018, we acquired the US-based niche testing specialist VR Analytical to create an international footprint, increase capacity and expand into biopharma end market.

In the UK, we invested in a new state-of-the-art lab facility that tripled capacity and future-proofed the business. We made two further acquisitions in UK and Ireland that enhanced the group’s reputation as knowledge-driven service provider and further expand the international footprint.

In July 2021, we successfully sold the business to a strategic buyer Element Materials.

35%

Internal Rate of Return

3

Add-ons - creating an unrivalled science testing force in the marketplace

5

Locations across the UK, Ireland and North America

About Limerston Capital

Limerston Capital is a private equity firm with over £300 million under management. We target UK businesses valued at £20 - £200 million, partnering with management teams to help build them into industry leaders. 

 

We differentiate by providing strong operational and acquisition support to our companies through our fully-integrated and dedicated operational and investment teams.