After private equity buyout, Millstone grows through takeover of contract manufacturer MycoScience
Working out of its Food and Drug Administration-certified site, Connecticut-based MycoScience supports the pharmaceutical and medical device industries with services including contract manufacturing and microbial aerosol challenge testing.
MycoScience’s capabilities caught the attention of Millstone, a US provider of post-manufacturing and aftermarket services. Millstone CEO Karl Neuberger outlined the rationale for the takeover.
“With the acquisition of MycoScience, we can offer our customers more support and better controls around product testing, with a single expert point of contact,” said Neuberger. “The more advanced and thorough post-manufacturing and aftermarket services we can offer our customers, the more we can support them in creating and accelerating products that change patients’ lives.”
The takeover comes 11 months after the private equity firm Arlington Capital Partners bought Millstone. At the time, Neuberger said the deal would support Millstone’s “next phase of growth and expansion,” adding that Arlington had the ability to “provide significant strategic and capital support.”
Other private equity firms that have bought biopharma service providers have sought to increase the value of the acquired assets by combining them with other companies through mergers and acquisitions. Arlington signaled its intention to accelerate growth both organically and through strategic acquisitions when it bought Millstone.
The expansion drive has manifested in the addition of cleanroom space for medical device packaging operations at Millstone’s site in Massachusetts, a move the company framed as a response to the effect of new European Union regulations, and now to the acquisition of MycoScience.
MycoScience’s leadership team, including CEO Sarath Koruprolu, are staying on after the takeover. Gordon Auduong, a principal at Arlington called MycoScience’s testing capabilities “a natural extension to Millstone’s current post-manufacturing and distribution and logistics services.”
