SAFE WORK LABORATORIES
Background
Safework Laboratories (“SWL”) was a privately-owned corporate drug and alcohol testing provider and the leading independent operator in the market.
Founded in 2012 by former Healthscope Pathology executive Mal Beacham, it had grown a national footprint of laboratories and counted blue-chip resources, industrial and engineering groups as its customers.
However, this growth had resulted in a challenged balance sheet with a number of parties lending to the business. SWL had also raised equity from a number of investors, some of whom wanted to sell their holdings, whereas the founder wished to retain his stake In addition, SWL had recently secured a major contract from an existing customer, which required working capital funding.
Role
Conquest Capital was mandated by Safe Work Laboratories to advise on a debt refinancing, debt and equity raising and a partial equity sale
Reporting to the Board, this also entailed being aware of the potentially competing and sometimes conflicting objectives of the multiple different stakeholders
Outcome
After a comprehensive process, Pathology Asia Holdings, an investee company of TPG Capital Asia, a global private equity firm, invested in the business, which will ultimately result in it having a majority interest
The transaction enabled lenders to be refinanced and equity investors who wished to sell to be acquired
Senior management retained a significant minority stake and are aligned to the future success of the business
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