PE targets Cryosite logistics space

World private equity players are targeting Cryosite’s cold chain logistics space.

CTE/Cryosite is the only listed company allowing investors direct exposure to the Australia’s booming, $1b + clinical trials industry.

The group stores drugs and vaccines at low temperatures in high security facilities at South Granville near Sydney.

It has two main privately-owned competitors: PPP/Pharma Packaging Professionals, Melbourne and Flinders Clinical Trials Services, Adelaide.

Founded by Craig Rogers, PPP is now controlled by Philadelphia-based PCI/PCI Pharma Services. PCI is owned by PE players Partners Group, Thomas H Lee Partners and Frazier Healthcare Partners.

PCI has appointed Craig Rogers as Senior VP for PCI Asia Pacific as it ramps up Port Melbourne-based PPP to be the PCI HQ for the Asia Pacific region.

Based at Adelaide Airport, Flinders CTS is part of the $16b, family-owned, Zuellig Group, Hong Kong.

So Cryosite - with a lowly market cap of $2.6m - is flanked by seemingly great and powerful rivals.

I suspect these rivals respect – and even envy – CTE’s central position, a position unrecognized by the wider market.

But if they – or anyone else pondering a strategic entry into the clinical trials space – want to take out CTE they’ll need to deal with NED Andrew Kroger.

He controls 37%.

And there’s another player they’ll need to speak to – cord blood banker Cell Care Australia.

Cell Care Australia is CTE’s second ranking shareholder with a stake of ~20%.

Who owns CCA? CHAMP Private Equity.