Lightview Capital (“Lightview”) has announced the simultaneous recapitalization of its portfolio company, The Clarke Companies (“Clarke”), and acquisition by Clarke of Covex LLC (“Covex”). Clarke and Covex are leading providers of outsourced manufacturing automation, validation, computer systems validation and compliance services to the life sciences industry, respectively.
With corporate headquarters in Fishers, Indiana, Clarke is a leading provider of packaging, automation, validation, and vision inspection services to the life sciences industry including many of the Top 15 Pharmaceutical and Medical Device Manufacturing firms. The company provides turnkey solutions from initial design, project delivery and validation to ongoing compliance and change management support.
Located in Wayne, Pennsylvania with a complementary customer profile of Top 15 Pharmaceutical and Medical Device firms, Covex provides outsourced computer systems validation services (“CSV”) to life sciences clients focusing on enterprise IT and laboratory systems. The company provides end-to-end services from strategy to execution to ongoing operations including (i) quality and compliance (ii) program and demand management (iii) validation and implementation and (iv) onshore testing and data services.
“Since our initial acquisition of Clarke in 2015, we have continued to invest in the teams and systems required to scale the business. The acquisition of Covex capitalizes on our investments to date and represents a significant step towards our goal of building a national provider of outsourced engineering and validation services,” said Conor Mullett, Co-Founder and Managing Director of Lightview Capital.
The acquisition doubles the size of Clarke, expands its geographic footprint, and extends the roster of talent available to its clients. Furthermore, the combination will enable Clarke to leverage its engineering and automation pedigree in FDA regulated services in manufacturing with Covex’s strengths in Enterprise IT services to provide a more connected, cohesive, and compliant manufacturing, laboratory, and R&D IT systems environment.
“This expansion benefits our clients by bridging the firewall between Information and Operational Technology, which is increasingly important as products, devices and systems become more connected,” adds John Duffin, President, The Clarke Companies. “The acquisition of Covex expands Clarke’s midwestern geographic footprint into the North- and Southeastern markets and provides the expertise of both companies to its enterprise customers who require a highly specialized and efficient single-source solution.”
Rich Tabarrini, President of Covex, LLC who is remaining with the company in his current role noted that “the Covex team shares The Clarke Companies’ mission of trust, and as a single solution company we now bridge the gap between Information and Operational Technologies for enterprise companies that produce life-saving drugs and medical devices.”
Maranon Capital provided debt financing for the transaction. DLA provided legal advice to Lightview.
About Lightview Capital
Lightview Capital is a leading private equity firm investing exclusively in business services sectors across the lower middle market. Lightview is focused on providing its portfolio companies deep industry knowledge, insightful experience, and active resources to unlock growth and drive value. Lightview Capital’s approachable investment style combines deep operational and financial experience with an entrepreneurial spirit that delivers measurable results.
Headquartered in New Jersey and founded in 2012, Lightview Capital founders have successfully led direct investments and acquisitions of more than 50 growth companies. To date, more than half of those investments have led to IPOs or strategic exits yielding a combined enterprise value of nearly $2 billion. Over the course of their combined 50+ years of experience they have founded and managed both operating businesses and investment firms where they were instrumental in raising over $1 billion in capital from leading institutional investors that included university endowments, pension funds, family offices and funds.
For more information on Clarke, Covex or Lightview Capital, please contact James Elliott at jelliott@lightviewcapital.com.