The Quinn Partnership, Management Due Diligence Specialists, has been advising Key Capital Partners (“KCP”) on their investment in YorkTest, a specialist in food intolerance testing.

The management of biotech business YorkTest Laboratories has signed an £8.6m deal with KCP to support their buyout. The Leeds-based private equity house has backed the management team of YorkTest in completing an MBO, which sees CBPE Capital sell 100% of its stake in the testing business.

The deal sees KCP acquire a majority stake in the business, backing the incumbent management team of Rachel Jansen, CEO; Neil Guilder, CFO; Dr Gill Hart, scientific director; and Jonathan Brookes, operations director.

YorkTest’s sales are currently direct to the customer via recommendations and through its website, sales are now growing through its Lorisian brand to a series of partners. Last year it turned over £3.7m and made just over £855,000 in pre-tax profits.

YorkTest managing director Rachel Jansen said: “We are immensely proud of the service we have developed over the years, and the impact our services have to improve the health and lives of many people every year.

“With 45% of people suffering symptoms of food intolerance, and three out of four people reporting feeling a benefit within four weeks of starting one of our dietary change programmes, we are only just scratching the surface of this huge issue.

She continued: “We were looking for a partner to help us continue to build on the brand equity, continue to add complementary products and scale up to take advantage of the market opportunity in front of us, on a global basis. KCP see the same opportunities that we do, they bought into our customer engagement programme and fully supported our plans to grow and develop the business and provide food intolerance sufferers with a well-established, proven solution.”

James Hall, Partner at KCP, who led the investment team alongside Seb Wilkinson, will join the board of YorkTest, said: “This is a long-established business with a proven track-record and reputation for quality in the food intolerance testing market, and we see huge potential for growth both directly to consumers as well as continued expansion into the business to business channel.

“The firm’s success lies in its unique service and delivery model, as well as the quality and reproducibility of its scientific processes.”

Mike Stiles, Director of The Quinn Partnership said ‘With such an established and scalable business there is great opportunity for growth with KCP’s investment alongside their deep experience of working with teams on that journey.’