Covington Associates acts as Adviser to Emory University in the announced joint venture between the Emory Genetics Laboratory and Eurofins
June 29, 2015 (Boston, MA) – Covington Associates LLC, a leading middle market investment bank, announced its role as exclusive financial advisor to Emory University(“Emory”) regarding the announced spin-off of its wholly-owned Emory Genetics Laboratory (“EGL”). Emory and Eurofins Scientific (“Eurofins”) today announced the signing of an agreement whereby Eurofins will acquire for cash a 75% stake in EGL, based on an Enterprise Value of approximately $55 million, subject to standard closing adjustments. Post-closing, the business will be known as EGL Genetic Diagnostics LLC, a joint venture company of Eurofins and Emory.
Founded in 1970, EGL is a leading provider of high-complexity molecular, biochemical and cytogenetic testing for rare and common genetic diseases and disorders. EGL employs around 100 staff at its laboratory in Atlanta, GA, serving over 400 institutional clients worldwide. Eurofins is a global leader in bio-analytical testing and genomic services.
“The team at Emory Genetics Laboratory is excited about working with Eurofins, contributing our unparalleled expertise in clinical diagnostics, and expanding the reach of our experience to an international patient community,” commented Madhuri Hegde, PhD, Executive Director of EGL. “Our team of more than 100 staff members is led by a highly experienced and knowledgeable core group of laboratory directors who are pioneers in the field of human genetics.”
EGL is renowned for testing rare genetic disorders. The laboratory has comprehensive testing facilities for cytogenetic, biochemical and molecular genetics. As the first academic laboratory to bring Next Generation Sequencing (NGS) technologies to the commercial clinic market, EGL remains a leading player in cutting-edge genetic diagnostics with “first-to-market” tests comprising more than 80% of its analytical portfolio. As a leading NGS testing laboratory, EGL believes it has the largest menu of NGS panels in the industry, conducting over 35,000 tests annually for genetic diseases, carrier screening, and prenatal testing. EGL also leads the industry in gene panels, including cancer testing and exome sequencing, which aid in diagnosis, prognosis, management and targeted drug therapy (e.g., personalized medicine).
“This transaction brings together two leading players in the human genomic testing field and positions Eurofins for further growth in the diagnostics arena,” noted Steve Mermelstein, Managing Director at Covington Associates and lead advisor to EGL. “Eurofins is the ideal partner for Dr. Hegde and her lab to grow its testing capabilities aggressively, while leveraging EGL’s long-standing reputation for innovation and leadership in the genetic testing space.”
“This joint venture with world-renowned medical and scientific teams at Emory University strengthens Eurofins’ growing footprint in the specialty clinical diagnostics market, and provides the Group a truly unique platform to leverage its renowned competence in genomic testing to better serve the global healthcare community,” said Eurofins CEO, Gilles Martin, PhD. “In combination with ViraCor, Boston Heart and Diatherix, EGL provides Eurofins a leading position in the most technologically-driven segment of the specialty clinical diagnostic testing market.”