The criminal justice forensic sector has been strengthened thanks to an acquisition deal brokered by corporate finance specialists Watersheds.
The sale of Orchid Cellmark Limited (Cellmark Forensic Services) to the Eurofins Scientific Group (Eurofins) has been the culmination of a relationship built over a number of years, with Swindon-based Watersheds having previously advised on Cellmark’s acquisition of Pinmoore Animal Laboratory Services Ltd (PALS) in 2022.
Cellmark is one of the largest suppliers of forensic analysis services to the police and is the UK’s leading DNA paternity testing laboratory.
As well as carrying out forensic analysis at crime scenes, Cellmark also provides a wide range of specialist laboratory analysis and interpretation services to support the investigation of criminal activity.
In addition to working for the police, the Company carries out forensic analysis and case review for the defence and provides DNA relationship analysis and drug and alcohol testing to government departments, the legal community and members of the public.
Given that Cellmark and Eurofins Forensic Services Ltd (owned by the Eurofins Scientific Group) both hold significant market share in the UK forensic testing market, clearance was required from the Competition and Markets Authority (CMA) for the acquisition to take place.
The acquisition brings a number of synergistic benefits and growth opportunities for both businesses, which will result in a stronger forensic science marketplace and greater stability for the sector.
John Stopher, Partner at Watersheds’ Swindon office, explained: “The process of gaining CMA approval for the transaction to be cleared is uncommon for a deal of this size, so this was a fairly unusual one for us.
"Whilst this did add another layer of complexity to the deal, we were very pleased to have the acquisition approved and so deliver an outcome that not only suited both the buyer and seller, but also fortified the forensic sector as a whole and its contribution to the criminal justice system.
“Unusual situations often present additional challenges, so it was important for us to ensure that the shareholders felt well-supported throughout the entire process in order to help drive a successful outcome.
"Throughout our time working with the shareholders, we’ve assisted with both the acquisition of PALS and the sale of Cellmark, demonstrating our ability to adapt and add value for our clients in a range of different scenarios.”
David Hartshorne, former Managing Director and shareholder of Cellmark said: “Watersheds is a great organisation to have on your side.
"They have a wealth of experience and expertise and provided valuable analysis and advice during our acquisition and subsequent business sale. In particular, we really valued their personal approach to doing business and felt very supported by the team.
"The Watersheds team was proactive and showed considerable tenacity and commitment to help drive both processes to successful conclusions.”
Legal advice was provided by RWK Goodman. More information on Watersheds can be found at www.watersheds.ltd.uk
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