Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has acquired Technical Safety Services (“TSS” or the “Company”) from The Edgewater Funds and JZ Partners. Financial terms of the transaction were not disclosed.
Founded in 1970, TSS is a leading provider of testing, inspection, certification, and calibration (“TICC”) services to customers in the pharmaceutical, biotechnology, healthcare and other life sciences end markets. Headquartered in La Jolla, California, TSS provides on-site technical services mandated to occur at regular intervals to ensure all clients remain in compliance with regulatory standards. TSS’s services are performed across the lifecycle of a customer facility and ensure the compliant operation of controlled environments such as clean rooms, bio-safety cabinets, medical gas systems, high-purity water systems, laboratory equipment and more.
“We are delighted to partner with TSS, one of the leading providers of TICC services within the highly attractive healthcare and life sciences end markets” said Matthew Rich, Partner at LLCP. “Our team was impressed with TSS’s ability to provide services that adhere to the highest regulatory standards and to deliver premier customer service for its clients. We are excited to work with the management team to build on TSS’s impressive recent growth through additional strategic M&A and broadening of the Company’s services across new geographies, both domestically and internationally.”
CEO Brent Hart will continue to lead TSS under LLCP’s ownership. Mr. Hart has been a part of the TSS team for nearly 20 years and has led the Company’s strategic expansion including the completion of over 20 add-on acquisitions since 2018, and substantial expansion of client relationships and geographic presence.
“I am thrilled that TSS is partnering with LLCP as the Company embarks on its next stage of growth. LLCP understands our business model and shares our vision to build out our client service and management practices, pursue cross-selling opportunities, execute strategic acquisitions, and penetrate untapped geographies,” said Mr. Hart. “LLCP has a track record as an excellent partner to management teams with a focus on strengthening brands, client engagement, and service offerings. We are eager to leverage their industry knowledge and operational expertise in the next phase of TSS’s growth.”
TSS is the ninth platform investment of Levine Leichtman Capital Partners Fund VI, L.P. Across its funds, LLCP has invested extensively in the services, testing, safety, and healthcare sectors, including investments in companies such as Trinity Consultants, FlexXray, Encore Fire Protection, In-Place Machining, Smith System, Therapeutic Research Center, and Monte Nido.
Kirkland & Ellis LLP acted as legal counsel to LLCP on the transaction.
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners, LLC is a middle-market private equity firm with a 39-year track record of investing across various targeted sectors, including franchising, business services, education and engineered products. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. This unique structure provides a less dilutive solution for management teams and entrepreneurs, while delivering growth and income with a significantly lower risk profile.
LLCP’s global team of dedicated investment professionals is led by nine partners who have worked at LLCP for an average of 19 years. Since inception, LLCP has managed approximately $12.9 billion of institutional capital across 15 investment funds and has invested in over 100 portfolio companies. LLCP currently manages $9.0 billion of assets and has offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm, The Hague and Frankfurt.
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