Labstat International

Industry

Contract Laboratory

Company Profile

Established in 1976, Labstat International is the world’s leading independent analytical laboratory dedicated to tobacco testing, research and development, and analysis for regulatory reporting and labeling for major international tobacco manufacturers, governments, university researchers and private interests.

NewPoint’s Role

NewPoint was retained as exclusive financial advisor by the shareholders, which included management and Edgestone Capital Partners, a major Canadian private equity group, to sell the business. NewPoint planned and executed a disciplined and confidential process, extensively canvassing financial and strategic groups worldwide. Due to Labstat’s niche market, a key value-add of NewPoint was the development of a robust international list of potential buyers given that the Company was one of only two organizations in the world performing tobacco testing services as its primary offering.

Transaction Snapshot

After approaching various financial and strategic parties with existing laboratory businesses and those with an expressed interest in the industry, the Company was ultimately sold to Huron Capital Partners, a U.S. private equity group. This resulted in management gaining the opportunity to monetize a significant portion of its ownership at a very favourable price, whilst retaining a significant interest in the future success of the business.