Pharos Capital Group, LLC, a private equity firm based in Dallas and Nashville, announced today it has sold its stake in portfolio company TechLab, Inc., a leading developer and manufacturer of rapid, non-invasive diagnostic tests for infectious disease, intestinal inflammation, and parasitology, to SSI Diagnostica, a portfolio company of the private investment firm Adelis Equity. Terms of the transaction were not disclosed.
SSI Diagnostica is a developer and manufacturer of diagnostics products based in Copenhagen, Denmark. SSI Diagnostica’s global distribution network and production capability will complement TechLab’s U.S. and global operations to grow the scale of the combined company’s diagnostics business. TechLab will continue to operate out of its Virginia R&D and manufacturing facilities, and will retain its workforce subsequent to the transaction. TechLab’s existing management team will remain with the company.
“Pharos is a committed investor in the diagnostics sector, and we are pleased to have worked with TechLab to expand the company’s distribution network and the reach of its enteric diagnostic tools,” said Joel Goldberg, Partner at Pharos Capital Group. “Our hope is that TechLab will continue to thrive with SSI Diagnostica as it continues to grow its product offering to help reduce the annual economic and medical burden of healthcare-associated infections by giving practitioners the means to quickly assess patient needs, improve outcomes, and decrease readmissions.”
Pharos initially invested in TechLab in September 2016 out of its Pharos Capital Partners III/III-A funds. In addition to its diagnostic testing for infectious disease, intestinal inflammation, and parasitology, TechLab also offers testing products for gastrointestinal conditions, including Inflammatory Bowel Disease, Irritable Bowel Syndrome, and E. coli. The Company’s low-cost tests improve clinical decision-making, reduce time to treatment, and lower unnecessary hospital spend. The company’s flagship product, QUIK CHEK®, is now the market-leading test for C. difficile, the third most common Healthcare-Associated Infection (HAI) in the US.
“Our partnership with Pharos has been extremely rewarding, and we are delighted with the growth of our suite of diagnostic tools and our operational capabilities,” said Daniel Delaney, TechLab CEO. “We look forward to working with our new partners, SSI Diagnostica and Adelis Equity, to continue to expand the global scope of our products and develop new life sciences technologies.”
Lincoln International served as the exclusive financial advisor and Gibson Dunn served as legal counsel to TechLab and Pharos on the transaction.
Founded in 1989, TECHLAB, Inc. is a leading developer and manufacturer of diagnostic products. The Company has a portfolio of diagnostic tests for infectious disease and intestinal inflammation testing. TECHLAB also performs diagnostics and life science contract manufacturing and services. TECHLAB is headquartered in Blacksburg, Va. and manufactures its diagnostic tests in the United States at its state-of-the-art manufacturing facility in Radford, Va. For more info, visit www.techlab.com.
Based in Dallas and Nashville, Pharos Capital Group (www.pharosfunds.com) is physician-founded investment firm focused on growing healthcare companies that aim to lower the total cost of care, improve patient outcomes and expand access to care in underserved communities. Since inception, Pharos has invested in 57 companies and has over $1.2 billion of private equity assets under management as of June 30, 2022. Pharos typically invests $25–$50 million in rapidly growing middle market companies seeking later stage funding for internal growth, acquisitions, leveraged buyouts, management buyouts, or recapitalizations predominantly across healthcare sectors.
