GTCR to sell stem cell company to AMAG for $700m

The private equity firm initially invested in Cord Blood Registry in 2012 through its Fund X

GTCR is selling its portfolio company Cord Blood Registry to AMAG Pharmaceuticals for $700 million according to a statement.

GTCR acquired CBR in September 2012 through its GTCR Fund X, for which it raised $3.25 billion in 2011. CBR provides services which enable expectant families to preserve their child's umbilical cord blood stem cells and cord tissue samples for future medical use by the child or family members, the statement said.

“They have been outstanding partners as we have further refined our commercial strategy and supported the clinical applications of cord blood and cord tissue stem cells,” said CBR chief executive Geoffrey Crouse. Crouse, a life sciences executive, joined CBR as CEO following GTCR's acquisition. “We look forward to working with AMAG to continue to support the advancement of medical applications for more families.”

CBR, founded in 1992, is the world's largest newborn stem cell company and stores samples from more than 500,000 children. GTCR, founded in 1980, is based in Chicago and invests in growth companies in financial services & technology, healthcare, technology, media & telecommunications and growth business services industries. It manages $11 billion in assets and has most recently raised $24.23 million for GTCR Co-invest XI in 2014, according to PEI's Research & Analytics division. 

A spokesperson for GTCR was not immediately available for comment.

AMAG is a Massachusetts-based company with a portfolio in maternal health, anemia management and cancer supportive care. At the time of publication, AMAG's share prices on the New York Stock Exchange were up 17 cents, or 0.24 percent, at $70.53, giving the company a market capitalization of $2.15 billion. 

The transaction is expected to close in the third quarter and involved Kirkland & Ellis LLP as the legal advisor to GTCR and CBR.