International Auction Process Results in Successful Divestiture of Niche Business
Industry: Contract Laboratory
Company Profile: Established in 1976, Labstat International is the world’s leading independent analytical laboratory dedicated to tobacco
testing, research and development, and analysis for regulatory reporting and labeling for major international tobacco manufacturers, governments,
university researchers and private interests.
NewPoint’s Role: NewPoint was retained as exclusive financial advisor by the shareholders, which included management and Edgestone
Capital Partners, a major Canadian private equity group, to sell the business. NewPoint planned and executed a disciplined and confidential process,
extensively canvassing financial and strategic groups worldwide. Due to Labstat’s niche market, a key value-add of NewPoint was the development of a
robust international list of potential buyers given that the company was one of only two organizations in the world performing tobacco testing
services as its primary offering.
Transaction Snapshot: After approaching various financial and strategic parties with existing laboratory businesses and those with an expressed
interest in the industry, the company was ultimately sold to Huron Capital Partners, a U.S. private equity group. This resulted in management gaining
the opportunity to monetize a significant portion of its ownership at a very favourable price, whilst retaining a significant interest in the future
success of the business.
