Leonard Green & Partners Leads Recapitalization of WCG in Partnership with Arsenal Capital Partners
Investments will further extend WCG’s growth journey.
NEW YORK, Nov. 14, 2019 — An investor group led by Leonard Green & Partners, L.P. (“LGP”), in partnership with Arsenal Capital Partners (“Arsenal”) and Novo Holdings, today announced that they have agreed to terms on a recapitalization of WCG. The recapitalization was structured to enhance the resources with which WCG will continue to extend its position as the world’s leading provider of solutions that measurably improve the quality and efficiency of clinical research. Financial terms of the transaction were not disclosed.
WCG is the world’s leading provider of clinical trial optimization solutions. The company enables biopharmaceutical companies, CROs, and institutions to accelerate the delivery of new treatments and therapies to patients, while maintaining the highest standards of human subject protections.
Peter Zippelius, Partner of LGP, commented, “We are thrilled to have the opportunity to help support WCG in its mission to accelerate the scientific advancement of human health. WCG fits squarely within LGP’s investment strategy of partnering with world-class management teams to support market-leading growth companies. WCG has not only achieved tremendous cash flow growth over the years, but has dramatically improved the efficiency of the clinical trial process for patients, sponsors, and sites. We are honored to have been chosen as a new investor in the company, and are excited to partner with the management team, Arsenal, and Novo Holdings to help accelerate this success.”
Steve McLean, a Senior Partner of Arsenal, said, “We are delighted to partner with LGP and Novo Holdings. Arsenal remains committed to facilitating the important mission of WCG enabling the safe development of important therapeutic treatments. Our new partners share this critical conviction and will augment the next phase of growth for this remarkable company.”
Dr. Donald Deieso, the Executive Chairman and CEO of WCG, stated, “With the benefit of this recapitalization, we are poised to accelerate our growth as we target new market segments and develop new capabilities. The support of these investors is indicative of the focus and dedication of our valued employees and commitment to our clients around the world. We look forward to continue working with our investors in the years ahead.”
Centerview Partners LLC acted as financial advisor to WCG and Arsenal. Morgan, Lewis & Bockius LLP acted as legal advisor to WCG. Kirkland & Ellis LLP acted as legal advisor to Arsenal. Barclays is serving as financial advisor, and Latham & Watkins is serving as legal advisor to the investor group and LGP.
The transaction is subject to customary approvals and is expected to close in the first quarter of 2020.
About Leonard Green & Partners
LGP is a leading private equity investment firm founded in 1989 and based in Los Angeles. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 90 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. LGP primarily focuses on companies providing services, including consumer, business, and healthcare services, as well as retail, distribution, and industrials. For more information, please visit www.leonardgreen.com.
WCG is the world’s leading provider of solutions that measurably improve the quality and efficiency of clinical research. The industry’s first clinical services organization (CSO), WCG enables biopharmaceutical companies, CROs, and institutions to accelerate the delivery of new treatments and therapies to patients, while maintaining the highest standards of human subject protection. For more information, please visit www.wcgclinical.com or follow us on Twitter @WCGClinical or LinkedIn.
About Arsenal Capital Partners
Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, completed over 45 platform investments and achieved over 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For more information, visit www.arsenalcapital.com.
About Novo Holdings A/S
Novo Holdings A/S is a private limited liability company wholly owned by the Novo Nordisk Foundation. It is the holding company of the Novo Group, comprising Novo Nordisk A/S and Novozymes A/S, and is responsible for managing the Novo Nordisk Foundation’s assets. Novo Holdings is recognized as a leading international life science investor, with a focus on creating long-term value. As a life science investor, Novo Holdings provides seed and venture capital to development-stage companies and takes significant ownership positions in growth and well-established companies. Novo Holdings also manages a broad portfolio of diversified financial assets. Further information: www.novoholdings.dk
Partner, Head of Investor Relations
Chief Marketing Officer, WCG
For Arsenal Capital Partners
For Novo Holdings
Christian Mostrup Scheel
Novo Holdings Communications
WCG is the world’s leading provider of solutions that measurably improve the quality and efficiency of clinical research. Comprised of two divisions, the industry’s first central IRB – WCG IRB – and first clinical services organization, WCG enables biopharmaceutical companies, CROs, and institutions to advance the delivery of new treatments and therapies to patients, while maintaining the highest standards of human participant protection. For more information, please visit www.wcgirb.com, www.wcgclinical.com or follow us on Twitter @WCGClinical or LinkedIn.