Pharma equipment manufacturer acquired by US PE firm

Chris Eccles from ChargePoint

A Liverpool pharmaceutical equipment manufacturer has been acquired by San Francisco-based Arcline Investment Management, for an undisclosed sum.

The deal will see ChargePoint Technology, become part of Arcline’s broader speciality process technologies platform offering, and enable it to strengthen its global presence, providing an enhanced, more localised service to its customers worldwide.

The transaction marks an exit for mid-market private equity firm LDC following a four-year partnership.

Arcline is a growth-oriented private equity firm that seeks to invest in thriving businesses with structurally recurring revenue streams in high value industries.

The firm’s primary sectors of interest include defence, aerospace, critical infrastructure services, industrial & biopharmaceutical technology, life sciences and specialty materials.

Launched in 2019, Arcline currently has $4.3bn in cumulative capital commitments. The firm’s more than 35 professionals are predominantly based in New York and San Francisco.

Working with Arcline, ChargePoint will be able to further accelerate its product development pipeline, empowering the company to deliver enhanced sterile and contained process solutions, as well as new innovations and technology platforms, to market faster than before.

ChargePoint manufactures high performance containment and sterile transfer valves, and its patented technology is used by clients ranging from the world’s top pharmaceutical companies through to smaller, independent manufacturers.

It represents the leading investment into Arcline’s new process technology platform and is anticipated to be the first of several acquisitions to support this platform.

An Arcline statement said: “We are excited to become part of the ChargePoint Technology story and to partner with the ChargePoint team to support the global production of medicines.

“ChargePoint Technology has an impressive product portfolio, and an incredible and visionary team of technical experts. Together, we believe we will be able to create and deliver a truly cutting-edge technology platform that will transform pharma & biopharma processing, benefiting both ChargePoint’s customers and ultimately the patients relying on their products.”

The new investment will offer considerable benefits for ChargePoint and its customers, allowing the business to increase and deepen its local presence in key European, American and Asian markets.

A broader global presence will enable ChargePoint to offer its customers increased localised support, tailored to the unique needs of their business to help them navigate challenges in their local markets.

Chris Eccles, ChargePoint Technology chief executive, said: “Partnering with Arcline is an incredible opportunity for us to further strengthen our commitment to delivering high quality world class process solutions for our customers.

“Arcline share our energy, focus and passion, a powerful synergy which will further catalyse the innovation of our products and improve the support we offer customers across the globe. We look forward to working with the team at Arcline to build the process solution platforms of the future.”

John Clarke, investment director at LDC in Manchester, said: “During our partnership with the business, Chris has led ChargePoint to become a leading international player in its market.

“We’re excited to watch ChargePoint continue its impressive expansion under Chris’s leadership and wish the team the best with their future growth plan.”

Results filed at Companies House for the year to January 7, 2020, showed that ChargePoint achieved revenues of £12.723m, a 2.5% improvement on the previous year, while EBITDA was down 8.9% at £4.138m. Pre-tax profits of £3.275m compared with £3.154m in 2019.

Clearwater International advised ChargePoint and LDC, led by partner Paul Jones, director Mark Gillingham, associate director Zack Goddard and senior associate Dom Moir.

Addleshaw Goddard’s corporate team in Manchester advised on the deal, led by partner Paul Medlicott, managing associate Katie Parker, associate Aidan Barry and corporate paralegal Cordelia Philpotts.

PwC provided financial due diligence, led by partner Sydel Hussain.

LEK provided commercial due diligence, led by partners Ben Faircloth and Florian Funke.

RSM provided tax advice, led by partner Colin Smyth and technical associate director Tim Douglas.

A team from Eversheds Sutherland, led by corporate partner Lizzy Tindall, advised Arcline Investment Management.