Histo-Scientific Research Laboratories and Vet Path Services Merge

Formation of company to meet growing demand for high-quality histopathology services in the research and pre-clinical therapeutics markets includes growth equity investment from Ampersand Capital Partners

News provided by

Ampersand Capital Partners

Dec 11, 2018, 08:00 ET

MT. JACKSON, Va. and MASON, Ohio, Dec. 11, 2018 /PRNewswire/ -- Histo-Scientific Research Laboratories, Inc. (HSRL), has completed its merger with Vet Path Services (VPS) to create the leading provider of research and pre-clinical histology, pathology and archiving services for the biopharmaceutical, medical device and contract research industries. In conjunction with the merger, the new entity also received an investment from Ampersand Capital Partners to continue expanding the company in the rapidly evolving pre-clinical histopathology market.

Mt. Jackson-based HSRL is well-established as a trusted provider of critical services in the pre-clinical research and development market, specifically histology and pathology services for routine tissue analyses, efficacy determination for new compounds and devices, toxicologic evaluation of products subject to FDA approval and detailed pathology reporting for Good Laboratory Practices (GLP) studies. Equally reputable, VPS offers substantially corresponding histology and pathology expertise that will play a valuable role in growing the combined company's service capabilities. With the merger, the organization now has footprints in Mt. Jackson, VA, Mason, OH and Worcester, MA. The company plans to significantly expand its Worcester site, where complex immunohistochemical techniques and image analysis is performed, in order to best serve the significant demand for these services in the market.

"We are very excited to partner with VPS to expand HSRL's service offerings, and to rapidly scale the combined company to meet the growing demand for high-quality histopathology services in the research and pre-clinical therapeutics markets," stated Mr. Thomas Galati, founder and CEO of HSRL, who will serve as CEO of the combined entity. "The addition of VPS brings not only valuable technical and operational expertise, but also increased service capabilities and a specialized comprehension of complex histopathology with regard to medical devices."

Founder and Vice President of VPS, Mr. Chris Johnson, commented, "Our partnership with HSRL represents a highly complementary union of histology and pathology expertise that is unrivaled in the industry. The combination creates an organization that has access to over 25 board-certified veterinary pathologists, who together offer a diverse experience base and the scientific ability to accomplish any project."

In conjunction with the merger, the company has received an investment from Ampersand Capital Partners, a leading private equity fund focused on the healthcare sector. Ampersand Partner David Anderson added, "HSRL and VPS represent an excellent fit with Ampersand's strategy of investing in growth-oriented businesses in exciting markets that we know well. Each company has established leadership positions in specialty segments of the research and pre-clinical histopathology markets, and we are thrilled to have the opportunity to partner with an impressive management team focused on driving future growth and success."

About Histo-Scientific Research Laboratories
HSRL was established in 1999 with one goal in mind: to provide the highest quality histology, pathology, and specimen archiving services. Since then it has grown into one of the largest and most well-respected independent providers of GLP-compliant histopathology services to the biopharmaceutical and CRO industries. Their laboratories in VA and MA employ 22 experienced histology technicians, a pathology support team and a Quality Assurance Unit. HSRL retains five board-certified (ACVP) veterinary pathologists on staff, and has access to an additional eight consulting board-certified veterinary pathologists. Secure, long-term archiving is available in two locations, to accommodate ambient, refrigerated and frozen storage needs. All of HSRL's services are GLP-compliant, including immunohistochemistry. Every team member takes the time and consideration to ensure each study is given the attention to detail that it requires. HSRL's staff is committed to scientific integrity and superior responsiveness to clients' needs. Additional information about HSRL is available at www.hsrl.org.

About Vet Path Services
Founded in 2005, VPS is one of the largest independent contract histopathology corporations in North America. For over a decade, they have provided quality, expert, and timely GLP-compliant histology and histopathology services to the pharmaceutical, biotech, chemical, medical device, consumer product, and CRO industries. Their staff consists of 12 board-certified (ACVP) veterinary pathologists, 28 highly-trained histology technicians, and dedicated Quality Control (QC) and Quality Assurance (QA) units, all of whom are committed to quality work, excellent customer service, and meeting demanding timelines. In addition, VPS offers long-term GLP-compliant archival services for residual wet tissues, embedded tissue blocks, microscopic slides, paper data, electronic media, and cold (5^oC and –20^oC) and ultra-low-temperature (-80^oC) storage for materials such as test article samples. Additional information about VPS is available at www.vetpathservicesinc.com.

About Ampersand Capital Partners
Founded in 1988, Ampersand is a middle market private equity firm dedicated to growth-oriented investments in the healthcare sector. With offices in Boston, MA and Amsterdam, Netherlands, Ampersand leverages a unique blend of private equity and operating experience to build value and drive superior long-term performance alongside its portfolio company management teams. Ampersand has helped build numerous market-leading companies across each of its core healthcare sectors, including Brammer Bio, Confluent Medical, Genewiz, Genoptix, Talecris Biotherapeutics and Viracor-IBT Laboratories. Additional information about Ampersand is available at www.ampersandcapital.com

SOURCE Ampersand Capital Partners