Key invests £8.6m supporting the MBO of YorkTest Laboratories
Private equity house, Key, has backed the management team of YorkTest Laboratories Ltd in completing an MBO that sees CBPE Capital sell 100% of its stake in the food intolerance testing business, which trades as YorkTest and Lorisian.
Key has provided YorkTest with excellent advice and support throughout its investment in the business. Key brings a wealth of financial and commercial experience to share with our management team. They attend monthly board meetings and help us focus on the key issues, review strategy and drive the business forward. James and Matt, together with all of the team, bring a positive and supportive approach as investors in our business.
YorkTest is the UK market leader in food intolerance testing. The company offers comprehensive support to customers in identifying food intolerance and then guiding them through dietary changes with the aim of addressing ailments such as IBS, migraines and skin conditions. YorkTest applies a rigorous process at its York-based laboratory to determine specific food or drink reactions, and then provides professional nutritional consultations to support and advise the customer in eliminating trigger foods from their diet – all with a simple finger-prick blood test which maximises ease of use for the customer.
Whilst the majority of YorkTest’s sales are direct to the customer via recommendations and through its website, sales are now growing through its Lorisian brand to a series of partners including a network of nutritionists as well as healthcare, insurance and occupational health blue-chip customers. The main market for YorkTest’s offering is currently the UK with sales to overseas markets growing strongly – with its scalable business model, YorkTest is well positioned to increase its penetration of both the UK and overseas markets.
James Hall, Partner at Key, who led the investment team, will join the board of YorkTest.
This is a long-established business with a proven track-record and reputation for quality in the food intolerance testing market, and we see huge potential for growth both directly to consumers as well as continued expansion into the business to business channel. The firm’s success lies in its unique service and delivery model, as well as the quality and reproducibility of its scientific processes. The customers who look for support from YorkTest are often recommended by their friends and colleagues who have seen their lives dramatically improved. This weight of support is a testimony to the robustness of the YorkTest model and its management team’s constant focus on the customer.
The deal sees Key acquire a majority stake in the business for an investment of over £8m, backing the incumbent management team of Rachel Jansen, CEO; Neil Guilder, CFO; Dr Gill Hart, scientific director; and Jonathan Brookes, operations director.
Key was supported on the transaction by: Addleshaw Goddard as lawyers; BDO on financial due diligence; CIL on commercial due diligence; Hendersons on insurance; Intuitus on IT; and PwC on tax. CBPE Capital was advised by Strata Partners LLP and DWF LLP. The YorkTest management team was advised by Walker Morris.