Houlihan Lokey Advises Technical Safety Services

Houlihan Lokey is pleased to announce that Technical Safety Services (TSS), a portfolio company of The Edgewater Funds (Edgewater) and JZ Partners, has been acquired by Levine Leichtman Capital Partners (LLCP), a Los Angeles-based private equity firm. The terms of the transaction have not been disclosed.

Founded in 1970, TSS is a leading provider of testing, inspection, certification, and calibration services to customers in the pharmaceutical, biotechnology, healthcare, and other life sciences end markets. Headquartered in La Jolla, California, TSS provides on-site technical services mandated to occur at regular intervals to ensure all clients remain in compliance with regulatory standards. TSS’s services are performed across the lifecycle of a customer facility and ensure the compliant operation of controlled environments such as clean rooms, biosafety cabinets, medical gas systems, high-purity water systems, laboratory equipment, and more.

CEO Brent Hart will continue to lead TSS under LLCP’s ownership. Mr. Hart has been a part of the TSS team for nearly 20 years and has led the company’s strategic expansion, including the completion of over 20 add-on acquisitions since 2018, and substantial expansion of client relationships and geographic presence.

Edgewater is a Chicago-based private equity firm with over $2.8 billion of capital commitments raised since 2001. It provides capital and experience to outstanding growth companies. Edgewater’s investment approach focuses on funding high-quality middle-market companies where the firm can add substantial value through its capital, experience, and broad network.

JZ Partners, based in Chicago and New York, has an established track record of investing alongside the owners and management teams of privately held businesses to build successful companies and create long-term value. Operating under a management-centric investment policy, JZ Partners is dedicated to building value in each company through post-transaction investments and collaborative strategic growth planning. Since 1986, JZ Partners and its principal owners have made more than 300 investments, representing in excess of $4 billion.

LLCP is a middle-market private equity firm with a 39-year track record of investing across various targeted sectors, including franchising, business services, education, and engineered products. LLCP utilizes a differentiated structured private equity investment strategy, combining debt and equity capital investments in portfolio companies. Since inception, LLCP has managed approximately $12.9 billion of institutional capital across 15 investment funds and has invested in more than 100 portfolio companies. LLCP currently manages $9.0 billion of assets and has offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm, The Hague, and Frankfurt.

Houlihan Lokey served as financial advisor and assisted in marketing, structuring, and negotiating the transaction on behalf of TSS, Edgewater, and JZ Partners. This deal highlights Houlihan Lokey’s preeminent position and continued success advising clients in the testing, inspection, certification, and compliance and facility and equipment services sectors.