Jan 24, 2023

Capstone Partners Advised ToxStrategies on Its Acquisition by Renovus Capital

Capstone Partners advised ToxStrategies — a multidisciplinary scientific consulting firm — on its recapitalization to Renovus Capital. Terms of the deal were not disclosed.

ToxStrategies, is a scientific consulting firm specializing in toxicology, epidemiology, regulatory compliance, and safety. The company has a strong reputation for scientific excellence and advancing innovative solutions to address the complex regulatory and technical challenges confronting its clients in sectors including pharmaceuticals, biotechnology, medical devices, food and additives, chemical, government, and consumer products. With unique capabilities in assessing potential health effects and exposure to chemicals, biological contaminants, natural products, radionuclides, and pharmaceutical and biopharmaceutical products, ToxStrategies is a valued partner for both public and blue-chip private clients.

The company’s highly collaborative team of toxicologists, epidemiologists, industrial hygienists, engineers, exposure scientists, biostatisticians, and regulatory specialists are recognized leaders in their respective disciplines—frequently serving in leadership positions in professional societies and publishing in leading scientific journals. The company offers a wide array of consulting offerings including toxicology related services (e.g., human health risk assessment, safety assessment, computational toxicology, toxicology study design, and monitoring to support new drug development and product safety assessment, etc.) and epidemiology related services (e.g., research in support of new drug development, prevalence analyses for the development of therapies and rare disease designations, and epidemiological assessments for community-wide exposures, etc.).

“Renovus’ investment comes during a period of rapid growth at ToxStrategies,” said ToxStrategies Co-Founder Mark Harris. “With Renovus’ investment, ToxStrategies will leverage its reputation, knowledge base, customer relationships, and specialized regulatory and scientific expertise to make substantial new advances, further expand its existing client base, and develop new end markets.”

Hats off to the Capstone team for creating a highly competitive M&A process and finding a great partner to help further scale our business. Their attention to detail, responsiveness, and sound advice made a complicated process understandable for my partners and myself and resulted in a great outcome for ToxStrategies.

Mark HarrisCo-Founder, ToxStrategies

“ToxStrategies, with its exceptional scientific staff, sterling reputation, and innovative approach to tackling complex technical and regulatory issues critical for public health and brand integrity, is well positioned to capitalize on a number of market trends as well as legislation driving demand for consulting solutions including the CARES Act – OTC Drug Monograph Reform, FDA’s Food Safety Modernization Act, rising consumer concern regarding exposure to PFAS chemicals, and ongoing pressure to reduce animal testing,” commented Eric Williams, Managing Director and Head of the Healthcare Investment Banking team at Capstone Partners.

“We believe Renovus represents an ideal partner for ToxStrategies based on its experience across pharma and compliance services and expertise in scaling human capital business models. The partnership will enable ToxStrategies to expand service offerings and accelerate growth while remaining committed to delivering the top-notch scientific consulting solutions that their customers have to come to expect,” remarked Mark Surowiak, Director for Capstone Partners.

Founded in 2010, Renovus Capital Partners is a lower middle-market private equity firm specializing in the Knowledge and Talent industries. From its base in the Philadelphia area, Renovus manages over $1 billion across its three sector-focused funds and other strategies. The investment in ToxStrategies extends the firm’s track record of success investing in companies serving the global life sciences industry, which includes current portfolio companies ClinicalMind, MC3, Curtis Learning, and Clinical Education Alliance, as well as Red Nucleus—a provider of a full suite of digital learning and compliance solutions, which grew nearly 4x during the firm’s majority ownership period.

The expert investment banking professionals on Capstone Partners’ Healthcare Team work with leading middle market companies operating in the Life Sciences market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Healthcare Banking Team, contact us here.