Eureka Equity Partners (“Eureka”) today announced the sale of Toxicology Holdings Corp. and its subsidiaries (collectively, “ToxCo”), a leading national toxicology laboratory, to ACM Global Laboratory, Inc. (“ACM”), a full-service clinical and pathology laboratory and an affiliate of Rochester Regional Health System. Terms of the transaction were not disclosed.
Eureka formed Horsham, PA-headquartered ToxCo in partnership with a team of highly-experienced and successful industry veterans as a platform to acquire a regional workplace drug testing business and build a premier toxicology laboratory with a national footprint. ToxCo successfully executed its strategy during Eureka’s holding period, developing expanded testing capabilities and building a sales organization to penetrate growth markets in pain medication management monitoring, addiction management monitoring, health professional recovery monitoring, pharmaceutical drug formulation testing, and outsource reference testing for hospital-based laboratories.
“We are very pleased with the successful results of our partnership with the talented ToxCo management team,” said Chris Miller, a Partner with Eureka and former Director of ToxCo. “It has been a pleasure to work with CEO Tony Costantino and his team in building a market-leading laboratory and driving sustained profitable growth over our investment period. During our ownership, Tony and his team executed on our collective investment thesis that facilitated a fivefold increase in ToxCo’s revenue and EBITDA, while managing the growth of ToxCo’s staff from less than 40 employees at the time of our acquisition to 180 today. We wish Tony continued success in this next stage of his career and are confident he will be a key leader in ACM’s continued growth.”
“The last few years have been important for the growth of each of our service verticals,” said Tony Costantino, Ph.D. and CEO of Toxco. “Toxco has become a preeminent service provider in the toxicology arena and Eureka has supported us every step of the way in the execution of our growth plan. I have been extremely impressed with the entire Eureka Team. As an organization, we are poised to embark on the next exciting phase of our evolution, and we consider ourselves extremely fortunate to have had the strong support of Eureka as our partner.”
Lazard Middle Market LLC served as the exclusive financial advisor and Morgan, Lewis and Bockius acted as legal advisor to Eureka and ToxCo.
About Eureka Equity Partners Eureka Equity Partners is a private equity firm targeting niche market leaders with up to $100 million in revenue across industry segments in which Eureka brings significant experience and operating resources, including business services, health care services, specialty industrials and consumer products. Eureka focuses on partnering with proven managers to drive the growth of promising companies into outstanding enterprises. Eureka leads buyouts that bring significant ownership to the operators driving the success of the business. With this core principle that aligns the interests of our operators and our investors, Eureka is also experienced and comfortable effecting minority recapitalizations with flexible investment structures designed to uniquely meet the needs of the company, its management team and other shareholders. More information about Eureka Equity Partners can be found at www.eurekaequity.com.