Chicago-based GTCR has agreed to acquire a majority stake in Cole-Parmer Instrument Co. The deal is part of a recapitalization agreement in which GTCR will partner with Golden Gate Capital and the Cole-Parmer management team to grow the business through organic growth initiatives and continued strategic M&A in the fragmented life sciences and laboratory products sectors.
Since GTCR's sale to Golden Gate Capital in 2017, Cole-Parmer has evolved into a larger, higher-growth business with an expanded presence supplying pharmaceutical and biotechnology customers with mission-critical solutions. Under Golden Gate Capital's ownership, Cole-Parmer has completed multiple strategic acquisitions that have expanded its product portfolio, global operations, and exposure to secularly-growing end-markets. The company has also made significant investments in its cloud-based technology infrastructure, catalyzing faster and more efficient workflows for its customers.
Cole-Parmer will continue to be led by its current senior management team and will remain headquartered in Vernon Hills.
"We are grateful to Jim Rauh and the Golden Gate Capital team for their collaboration, and are very proud of the strategic and operational progress we have made,” Brust said in a statement. “Together, we have been able to execute on numerous growth initiatives, including a deepened focus on product innovation, establishing us at the forefront of our industry. We are delighted to be renewing our successful partnership with GTCR and look forward to working with both firms, who share our vision and commitment to continuing Cole-Parmer's evolution into a diversified products company focused on the life sciences, healthcare and environmental end-markets."
The transaction is expected to close in the fourth quarter of 2019. Financial terms were not disclosed.
Jefferies LLC served as financial adviser to the company. Latham & Watkins provided legal counsel to GTCR. Baird served as financial adviser and Kirkland & Ellis and Nob Hill Law Group P.C. provided legal counsel to Golden Gate Capital.