Huron Capital in 6x lab testing exit

The Michigan-based lower mid-market firm has sold chemistry and toxicology testing company Labstat six years after acquiring the company.

Lower mid-market firm Huron Capital has sold products testing company Labstat, generating a more than 6x return multiple. The business was purchased by Canadian investment firm Alaris Royalty Group and Labstat management.

Labstat provides chemistry and toxicology testing services to global tobacco manufacturers for regulatory and commercial purposes. Huron acquired the company in 2006, investing from its second fund that closed on $185 million in 2005. The firm is currently investing its third fund, which closed on $350 million in January 2008 after 30 days in market.

Limited partners in Fund III include Amsterdam-based AlpInvest Partners, fund of funds manager RCO Advisors and insurance company The Hartford.

Huron Capital was unavailable for comment at press time.

The firm typically writes equity cheques between $10 million and $70 million to acquire North American companies with revenues of up to $200 million. Huron currently has investments in 10 companies, according to its website, including automotive business Maple Leaf Automotive, plastics company Boomer Plastics and direct marketing services business LeadingResponse.

Founded in 1999, Huron has acquired or invested in 58 companies in a variety of sectors including document management, education, healthcare, specialty chemicals, specialty packaging, consumer products, food and beverages and laboratory testing. The Detroit, Michigan-headquartered firm opened a Toronto office in 2009, led by former TorQuest Partners executive Jeremy Busch.