London, UK – GHO Capital, the European specialist healthcare investor, today announces the acquisition of DNA Diagnostics Center (DDC or the Company), a world leader in the provision of specialist DNA-based diagnostic services, for a total transaction value of €104 million. Further details of the transaction were not disclosed.
DDC is a market leading diagnostics business and is one of the world’s largest providers of private DNA testing services. The Company’s platform technology offers a wide range of products in the fields of biological family relationship testing, veterinary services, forensic services and medical applications for the pharmaceutical industry including cell-line authentication. DDC currently processes over 750,000 tests per annum in its state-of-the-art facility and is consistently recognised as the laboratory of choice for high quality results and excellence in customer service.
The Company has a transatlantic footprint, with European operations in London, UK and US operations based in Fairfield, Ohio, and currently has 245 employees globally. With strong growth rates forecasted for the genetic testing markets worldwide, DDC is well-positioned to replicate its scalable, asset-light business internationally, particularly in the nascent and fragmented European market.
Mike Mortimer, Executive Partner and Founder at GHO Capital, said: “The field of genetic diagnostics is an attractive, high growth segment within healthcare and, as a well-established business with significant global potential, DDC is an excellent fit for GHO Capital’s investment strategy. GHO Capital has a deep understanding of diagnostics and clinical laboratories which, combined with our European presence and international networks, provides strong foundations for our alliance with the DDC team.”
Peter Vitulli, President and Chief Executive Officer of DNA Diagnostics Center, commented: “With a leading platform and broad customer base, DDC has delivered double-digit growth in recent years and is poised for continued expansion in Europe and internationally. We have found a differentiated, specialist partner in GHO Capital and we look forward to working together on the next phase of DDC’s continued growth.”
At GHO Capital, the transaction was led by Mike Mortimer, Executive Partner and Founder, and Dr Mark Braganza, Executive Partner. Deloitte LLP provided corporate finance debt advisory services to GHO Capital and Goldman Sachs Specialty Lending Group provided debt financing for the transaction. Ropes & Gray LLP provided legal advice to GHO Capital. Hogan Lovells provided legal advice, and Baird provided financial advisory services, to DDC.
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GHO Capital Partners LLP
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About GHO Capital
Global Healthcare Opportunities, or GHO Capital Partners LLP, was founded in 2014 as a specialist healthcare investment adviser based in London. Our vision is to apply global capabilities and perspectives to build a world-class healthcare specialist private equity firm by recognising and seizing the highly attractive and underpenetrated European market opportunity. We have a powerful combination of transaction, investment and industry skills which sets us apart from traditional private equity firms. For further information, please visit www.ghocapital.com.
About DDC (DNA Diagnostics Center)
DDC is one of the largest DNA testing companies in the world. Founded 20 years ago, DDC offers comprehensive DNA testing services for paternity and other family relationships, forensics, cell line authentication, and ancestry. DDC receives more than 800,000 consumer calls each year, and will perform over 750,000 DNA tests in 2015. DDC’s Dual Process™ ensures all collected DNA samples are independently tested twice producing legal results of unmatched quality and reliability. DDC is recognised through a number of accreditations nationally and internationally including those performed by the American Association of Blood Banks (AABB), The Ministry of Justice, and the College of American Pathologists (CAP). DDC is also accredited by ACLASS to meet the standards of ISO 17025 and the American Society of Crime Laboratory Directors / Laboratory Accreditation Board-International and follows the DNA Advisory Board (DAB) guidelines, which attests to DDC’s superior forensic testing service. For more information, please visit www.dnacenter.com.