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Levine Leichtman buys Technical Safety Services

Jun 23, 2022
Illustration of gloved hand holding test tube with checkmarks

Illustration: Eniola Odetunde/Axios

Levine Leichtman Capital Partners has scooped up Technical Safety Services, a Berkley, Calif.-based company ensuring regulatory compliance and productivity across lab environments.

Behind the scenes: Financial terms weren't disclosed. But a source told Axios in May that a 25x multiple of EBITDA was required to advance into the second round of the sale process, which would work out north of $800 million.

  • Houlihan Lokey and Harris Williams advised the sellers on what sources called a fast-moving process.

Flashback: Edgewater Funds and JZ Partners acquired TSS in March 2018, fueling an aggressive consolidation play with more than 20 add-on acquisitions.

How it works: TSS tests, certifies and calibrates critical equipment and controlled environments in the life sciences and health care markets.

  • On-site technical services are provided at regular intervals.

State of play: The biotech funding boom of the last several years (which has more recently slowed) led to many more labs being built. Thus more demand for TSS.

  • LLCP partner Matthew Rich commented in a news release that it would build on TSS' successful growth via "additional strategic M&A and broadening of the company’s services across new geographies, both domestically and internationally."
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