Avantik

Building on a diagnostics legacy

Founded in 1971, Avantik has steadily grown to become a trusted service provider to diagnostic laboratories. When the founding family decided it was time to transition to a new phase of growth, they selected Water Street, resulting in an incredible year of transformation for the company.

Avantik is a rapid-response, one-stop source for maintenance and repair services, consumables, and equipment to more than 3,000 U.S. diagnostic laboratories. This family-founded company has helped anatomic pathology, histology and dermatology labs maintain smooth, uninterrupted operations for more than 50 years.

We first connected with Avantik in 2021 and interacted regularly on business development ideas. When the founders were ready to transition to the next chapter of growth, they selected Water Street as their partner because of our deep industry knowledge and strong cultural fit.

Concurrent with formalizing the partnership, we worked together to recruit an industry leader to spearhead Avantik’s goals for growth. Mark Zacur stood out as a leader with a strong diagnostics background who shared Avantik’s customer focus and core values.

Since partnering with Water Street, Avantik has advanced its vision to become the go-to service and equipment provider to diagnostics labs nationwide:

Leveraged Water Street’s network, recruiting experienced diagnostics executives to augment its leadership team
Implemented a new ERP system
Acquired two established regional providers, CPBS Holdings (CPBS) and Marston Technical Services (MTS)

Together, we’ve more than doubled Avantik’s geographic service coverage nationwide.

3,000+ Avantik Diagnostic Lab Customers in Anatomic Pathology, Histology and Dermatology
2X Geographic Footprint Doubled in 2023 with addition of CPBS and MTS

We’ve elevated our business to a new level, creating an extensive national network of technicians and service hubs to keep our customers’ operations running smoothly. These are the first steps in our strategic expansion focused on supporting our customers with what’s most important: delivering accurate and timely diagnoses.
CEO Mark Zacur on Avantik’s national expansion Disclaimer

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Compliance Services

Identifying a new opportunity

Today’s intensifying health insurance regulatory environment is profoundly impacting U.S. companies. We formed Compliance Services, partnering with founders of three businesses to achieve our shared goal of building a provider offering comprehensive data, analysis and related services to support employers with intensifying healthcare compliance demands.

Our newest collaboration in employer healthcare services resulted from identifying a critical underserved need through our work with providers in this sector.

U.S. employers are facing immense pressure from an escalating list of increasingly complex federal and state healthcare benefits regulations. With enforcement tightening, demand for outsourced solutions is accelerating. The service provider marketplace is diffuse, with lawyers, brokers, HR specialists and others offering niche solutions.

153M Employer-Sponsored Health Benefits Cover Almost 153 Million Non-elderly People in the U.S.¹ ¹https://www.kff.org/report-section/ehbs-2023-summary-of-findings/
94% Of U.S. Firms with Over 50 Workers Offered Health Benefits in 2023¹ ¹https://www.kff.org/report-section/ehbs-2023-summary-of-findings/
1/4 One in Four Organizations Say They Have Been Audited by IRS for Potential ACA Non-Compliance² ²https://trusaic.com/press-center/irs-audits-1-in-4-companies-over-aca-non-compliance/
>50% Of Company Officials Find ACA Reporting Requirements Overly Burdensome³ ³https://www.benefitspro.com/2023/04/26/more-than-half-of-surveyed-companies-find-aca-compliance-burdensome-new-study-shows/?slreturn=20240003144240

With our deep experience in employer healthcare services, we saw an opportunity to work with specialized providers to build a first-of-its-kind, broad-spectrum platform that offers employers more options for addressing their growing healthcare benefits compliance needs.

In 2023, we partnered with founders of three providers specializing in compliance and claims services, each unique in its approach, to lay the foundation for building a provider that offers employers a new level of choice, efficiency and control in administering their healthcare benefits programs.

Choice
Efficiency
Control

Employer-sponsored health plan compliance issues in 2024 will continue to generate extensive federal and state regulatory activity, legislation, and litigation… [including] preparing for sweeping new mental health parity rules proposed for 2025, ongoing compliance with numerous group health plan transparency requirements, and efforts to rein in healthcare and prescription drug costs.
Mercer, “Top 10 Health, Leave Benefit Compliance And Policy Issues In 2024”

Discovery Life Sciences

Advancing to the next phase of growth

Since merging three businesses to create Discovery Life Sciences five years ago, we have collaborated with Discovery’s management team to transform the company into a premier provider of biospecimen products and specialty lab services. This year, we worked together to take the business to a new level.

In 2018, Water Street saw the opportunity to meet growing demand for high-quality biospecimens and advanced laboratory services to support drug discovery. We merged three businesses to create Discovery Life Sciences.

Since then, we have worked with management to plan and execute a strategic roadmap that expanded Discovery’s product portfolio into cell and gene therapy starting materials and in-vitro preclinical solutions. Together, we established and built Discovery’s specialty lab services through a combination of strategic acquisitions and organic investments.

13 Strategic Acquisitions in Five Years
1,150+ Pharma, Biotech and Cell & Gene Therapy Customers

We have completed 13 acquisitions and invested in new sites and donor centers, instrument platforms and supply chain initiatives to enhance efficiencies and support growth. We also committed additional capital to further build upon Discovery’s offerings and potential to make an even greater positive impact in advancing scientific research.

With Water Street support, Discovery accelerated its forward momentum in 2023:

Completed its 13th acquisition, joining with ReachBio Research Labs to expand Discovery’s cell biology and toxicology service offering
Opened a new 95,000sf global headquarters in the renowned HudsonAlpha Institute Biotechnology campus in Huntsville, Alabama
Completed the planned transition to a new CEO, Greg Herrema, recruited with the active involvement of Water Street and former CEO Glenn Bilawsky

We’re excited about our future:

We believe that the world-class capabilities we have created in genomics, proteomics, tissue biomarkers and flow are highly differentiated, positioning us well for future growth opportunities with our largest biopharma customers.
CEO Greg Herrema on Discovery’s expanded capabilities Disclaimer

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