Fairmount Assists Agilux in Deal with Charles River Labs

WILMINGTON, MA – September 28, 2016 – Charles River Laboratories International, Inc. (NYSE: CRL) announced today that it has acquired Agilux Laboratories, Inc., a Worcester, Massachusetts-based contract research organization (CRO), that provides a suite of integrated discovery small and large molecule bioanalytical services, drug metabolism and pharmacokinetic (DMPK) services, and pharmacology services. The company’s unique combination of early-stage services enhances the flexibility and speed of its biopharmaceutical clients’ lead identification, optimization, and candidate selection efforts. Agilux was acquired from a holding company controlled by the company’s founders and Ampersand Capital Partners, its only institutional investor.

The addition of Agilux’s integrated discovery capabilities is complementary to Charles River’s existing nonclinical portfolio. Providing a more comprehensive service offering will improve the efficiency of clients’ early-stage research efforts by enabling them to seamlessly transition their drug candidates through the discovery and safety assessment process. Charles River believes that the acquisition of Agilux enhances its ability to work with clients earlier in the drug research process, and maintain the relationship as molecules progress through nonclinical development.

James C. Foster, Chairman, President and Chief Executive Officer of Charles River said, “The acquisition of Agilux Laboratories supports Charles River’s strategy to offer clients a broader, integrated portfolio that enables them to work with us continuously from the earliest stages of drug research through the nonclinical development process. Agilux reinforces the linkage between our discovery and safety assessment capabilities, and provides clients with a comprehensive testing solution that spans their discovery and regulated drug development needs. We expect to leverage Agilux’s strong client relationships in the Boston-Cambridge biohub, one of the most significant concentrations of medical research in the world, and expand the reach of its discovery bioanalytical services offering to Charles River’s global client base.”

Fairmount Partners assisted Agilux in the transaction that culminated in the sale. Neal McCarthy, Managing Director of Fairmount Partners said, “Agilux was founded by Jim Jersey, Steve Guyan and Peter Glick, with funding from Ampersand, to be a focused drug discovery lab.  We watched the Agilux team established themselves as a leader in discovery bioanalytical services, and then judiciously add a complementary package of additional lab and discovery services, while expanding their diverse and loyal client base.  With Charles River Lab’s leadership and successful acquisition program in drug discovery services, they are the perfect strategic fit, and we were pleased to play a role in helping these two great companies come together.  This is our fourth transaction with an Ampersand-funded business, and a pleasure to work with them on another successful project.  This is also our third deal with the CRL team, and they were once again superb.

Financial and Transaction Details:

The purchase price was approximately $64 million in cash, subject to certain post-closing adjustments. Agilux is expected to generate full-year revenue of $27 million in 2016. The acquisition is expected to be neutral to Charles River’s non-GAAP earnings per share in the fourth quarter of 2016, and be slightly accretive to non-GAAP earnings per share in 2017. Items excluded from non-GAAP earnings per share are expected to include all acquisition-related costs, which primarily include amortization of intangible assets, transaction costs, and certain third-party integration costs.

Agilux will be reported as part of Charles River’s Discovery and Safety Assessment (DSA) segment.

About Charles River Laboratories, Inc.

Charles River Laboratories, Inc. is an American corporation specializing in a variety of pre-clinical and clinical laboratory services for the pharmaceutical, medical device and biotechnology industries. [1] It also supplies assorted biomedical products and research and development outsourcing services for use in the pharmaceutical industry. According to its website, its customers include every major pharmaceutical and biotechnology company in the world, major academic institutions and government research centers.  The company was initiated during 1947. The chief executive officer is James C. Foster. With more than 8,500 employees, the company has facilities in Canada, Belgium, France, Germany, Hungary, Italy, Ireland, China, Japan, the Netherlands, Spain, and the United Kingdom.

About Agilux Laboratories

Agilux Laboratories, Inc. is a contract research organization (CRO) focused on bioanalytical and PK/PD testing services for the biotech and pharmaceutical industries. Leveraging industry and contract experience of its management team, the company delivers high quality bioanalytical chemistry and PK/PD data more rapidly.  Agilux helps clients make better decisions during drug discovery and development by providing quality data earlier in the research process by using technologies and systems that increase turnaround speed well beyond industry standards.  Founded in 2007 by industry experts Jim Jersey, Steve Guyan and Peter Glick, Agilux is headquartered in Worcester, MA and was funded by private equity firm, Ampersand Capital Partners.

About Fairmount Partners

Based in Philadelphia, Fairmount Partners is the leading investment banker worldwide for pharmaceutical, device and related services businesses. Fairmount provides merger and acquisitions advisory services, and assists companies to raise funding for acquisitions, growth and liquidity. Fairmount’s Pharmaceutical Services Group has assisted clients to complete over 110 transactions in 18 countries in North and South America, Europe, Asia and Australia.

Principals of Fairmount Partners acted as advisors to Agilux Laboratories in this transaction.

Neal McCarthy

Further information is available at www.fairmountpartners.com