PAI looking at 3.7x return with ELITech sale

Bruker Corporation has signed an agreement with the private equity firm that includes a put option to buy ELITech.

  • ELITech is an in-vitro diagnostic company
  • Hospitals and laboratories in more than 100 countries use ELITech’s products
  • PAI invested in the business in 2017

UPDATED. PAI Partners will hit a 3.7x gross multiple on its investment in in-vitro diagnostic company ELITech Group if a potential sale to Bruker Corporation goes ahead.

Life science research and diagnostics company Bruker has signed an agreement with the private equity firm that includes a put option to buy Turin-headquartered ELITech.

ELITech develops and makes in-vitro diagnostics (IVD) instruments and reagents and is particularly strong in molecular diagnostics and microbiology, according to a statement. Hospitals and laboratories in more than 100 countries use the company’s products and it has seven development and manufacturing sites in Europe and the US.

PAI invested in the company in 2017, since when ELITech has invested in R&D, created new molecular diagnostics systems and entered new product development partnerships.

The potential sale would generate a 3.7x gross multiple on invested capital for PAI Europe VI.

“ELITech is an agile, research-driven company and this sale to a leading strategic player is a testament to the quality of the business,” said Stefano Drago, a partner at PAI, in a statement.

ELITech’s employee works councils will now be consulted on the deal, which is also subject to regulatory and customary closing conditions.

PAI Partners is a Paris-headquartered private equity firm with around €26 billion of assets under management.

Bruker is a $10 billion Nasdaq-listed life sciences research and diagnostics company headquartered in Billerica, Massachusetts.

Editor’s note: This article has been updated to reflect that ELITech is now headquartered in Turin.