Cello Health acquired by Arsenal Capital Partners

Global healthcare-focused advisory firm Cello Health has been purchased by a private equity firm for £182 million. Arsenal Capital Partners specialises in investments in middle‐market specialty industrials and healthcare companies, and is working to build an enterprise designed to enable healthcare clients to maximise the value of their products and accelerate patient access to medical and technological advances.

Mark Scott, CEO of Cello Health, commented, “This announcement marks an exciting moment for Cello Health. We have a shared belief with Arsenal that clients need a partner that combines industry expertise, commercial experience, scientific depth, and cutting-edge technology and data. We’re confident that we can accelerate growth by expanding support for our clients, investing in innovation, and continuing our ambition to become a world-class, truly global company.”

Cello Health is a global healthcare-focused consultancy comprised of a set of leading scientific, commercial advisory and digital delivery capabilities, and currently services 24 of the top 25 pharmaceutical clients globally, as well as a wide range of biotech, diagnostics, devices and other key non-healthcare clients. Delivering its services from an office network in the UK and US – with hubs in New York City, Philadelphia, New Jersey, London, Edinburgh, and Farnham – Cello Health’s 1,000 professionals works to enable clients to commercialise, differentiate their assets.

Under the terms of the acquisition, Cello Health shareholders were entitled to receive £1.61 in cash for each Cello Health share. Overall, the deal represents a total enterprise value of £181.8 million, providing the foundation for a new enterprise to enable healthcare and biopharmaceutical clients to maximise the value of their products.

Jon Williams, CEO of Arsenal’s new enterprise, said, “We are delighted to complete the acquisition of Cello Health as the foundation of this ambitious enterprise… Our clients are developing and commercialising new products in a world that’s complex, uncertain and often risky. But medical science and technology are moving quickly, leading to major breakthroughs and numerous opportunities. We are creating an enterprise that supports better strategic decisions, generates robust data and evidence, undertakes advanced analytics to draw out critical insights, and supports communication with a range of critical stakeholders.”

A number of professional services firms supported the deal. Rothschild & Co acted as financial adviser to Arsenal, while Ropes & Gray International provided legal advice. Marriott Harrison provided legal advice to Cello Health, with Greenhill acting as financial adviser, and Cenkos being nominated adviser and broker.

The move is hoped to complement the culture and capabilities of BresMed, a firm specialising in health economic research and submissions to payers, which was acquired by Arsenal in February 2020. Established in 2006, BresMed has more than 150 staff across offices in the UK, Ireland, the Netherlands, the US, and India who work to support clients with drug, device, and diagnostic products to reach new markets.