Grace Matthews brokers biomed firm purchase from Warburg Pincus

Milwaukee-based Grace Matthews Inc. recently brokered the purchase of Chaska, Minn.-based Lifecore Biomedical Inc. from Warburg Pincus Private Equity IX, LP.

Grace Matthews represented Landec Corp., a Menlo Park, Calif.,-based firm that specializes in polymer sciences and bio-application developments. In the acquisition, Landec paid $40 million in cash and assumed about $4 million in debt. The purchase also includes about $10 million in earn-out potential for Warburg Pincus if Lifecore hits certain financial targets in 2011 and 2012.

“The acquisition of Lifecore significantly advances our stated strategy to acquire a company that expands our capabilities in materials science, specifically in the area of biomaterials,” said Gary Steele, chairman and chief executive officer of Landec. “We view Lifecore’s hyaluronan biopolymers as a technology platform that can provide unique HA product innovations, as well as new products from potential synergies with Landec’s existing Intelimer polymers.”

“Lifecore is a great strategic and cultural fit for Landec, and I fully expect exciting new products and technologies to emerge from their combined capabilities,” said John Beagle, managing director with Grace Matthews.


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