SC&H Capital 2017 Mid-Year Update
July 28, 2017
Maryland based SC&H Capital said today that the team has closed 11 deals with a total value of over $400 million in the areas of technology, healthcare, manufacturing, and government contracting in the first half of 2017, more than doubling the number of transactions versus the same time period last year.
“We knew coming into the year that we would close a number of deals in the first two quarters based on our strong backlog and momentum built in 2016. However, to see this much activity in this timeframe proves the market is vigorous and doesn’t show any signs of slowing down particularly in our key areas of focus” said Managing Director, Christopher Helmrath.
All 11 transactions are unique success stories covering a broad landscape of industries and regions both nationally and internationally. Highlighted below are five transactions which feature clients who brought unique and dynamic offerings to the market having made very strategic decisions to position themselves over the past several years, and a snapshot of the evolving industry expertise the SC&H Capital team has developed:
- Earlier this year, Shin Nippon Biomedical Laboratories, Ltd. of Tokyo, Japan (SNBL) successfully sold a majority ownership stake in its subsidiary, SNBL Clinical Pharmacology Center, Inc. (SNBL CPC), to Beijing based Pharmaron, a fully integrated contract research organization (CRO) offering R&D services to the life sciences industry. “This was a very unique opportunity to advise a large international healthcare company serving a rapidly changing industry. This transaction demonstrated our ability to meet the needs of a complicated cross-border transaction in the dynamic healthcare industry” stated Helmrath.
- Adding to SC&H Capital’s historically extensive government contracting transaction list, the team has closed three deals this year; the sale of By Light Professional IT Services to private equity group Sagewind Capital, the sale of Intelesys Corporation to Polaris Alpha, a leading cybersecurity company backed by Arlington Capital Partners, and an unannounced deal completed this spring. For each of these clients, SC&H Capital was selected as the advisor due to the combination of impressive industry experience combined with senior level attention and M&A expertise.
- Another notable transaction in 2017 was the sale of Associates in Medical Physics, LLC (AMP) and Radiation Management Associates, LLC (RMA) to L2 Capital Partners. AMP and RMA are medical physics companies based in the Mid-Atlantic region that have been providing medical physics services to the healthcare community for more than 20 years. The shareholders hired SC&H Capital to help them seek a buyer who would maintain and grow their legacy of providing the highest quality of medical physics support to their clients. This transaction positions AMP and RMA to expand their reach beyond the Mid-Atlantic region and continue to grow their talented workforce in this unique healthcare niche.
Gregory Hogan, a Director in SC&H Capital, pointed to these five transactions as illustrations of the diverse nature of engagements that SC&H Capital has executed in 2017. “When you look at the different types of transactions we have completed, it really speaks to the robust capabilities of our team. Whether our clients are focused on strategic or financial buyers, we consistently delivered a unique approach and understanding to ensure a successful deal for our clients. I’m very pleased with how our team has performed and even more pleased with our ability to deliver on our promises to our clients.”
“In each of the 11 completed transactions, SC&H Capital was retained to be the investment banker as a result of our proven transaction methodology and our ability to understand the unique aspects that each client has and creating a process to leverage those differentiated capabilities in their respective capital markets. Whether that requires understanding the international aspects inherently involved in the opportunity, or knowing which strategic companies could utilize a client’s capabilities, the SC&H Capital team is structured to know how to effectuate transactions to exceed our client’s goals and objectives,” stated Matthew Roberson, a Principal in SC&H Capital.
The SC&H Capital Team is currently working with numerous clients who are all seeking to consummate a transaction by years end – 2017. Many of these clients have been steadfast owners of their businesses for years and have reached the conclusion that they have achieved the pinnacle of what they are capable of and that partnering with strategic entities who can provide additional resources (capital, talent, technology, etc.) is in the best interests of all of the stakeholders of their companies.
The team currently boasts a diverse and growing active client list including; a university with a medical school and teaching hospital, an owner of several surgical hospitals, an owner of a chain of nursing homes, an international market leading industrial machine manufacturer, a food processing manufacturer, and a South American cybersecurity technology company.
“The firm’s current pipeline is a reflection of SC&H Capital’s broad experience across industry verticals including opportunities in healthcare, manufacturing, technology, government contracting, and business services. We are well positioned to build on the strong year to date results based on a robust pipeline of active deals that are on track to close over the next several quarters,” stated Kevin O’Sullivan, a Principal in SC&H Capital.