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About Covington Associates

Covington Associates is a specialized investment banking firm focused on the middle market within the financial sector. The company offers services such as mergers and acquisitions, recapitalizations, growth equity, and strategic advisory. Covington Associates primarily serves the business services, healthcare, and software & tech services sectors. It is based in Boston, Massachusetts.

Headquarters Location

99 Summer Street Suite 200

Boston, Massachusetts, 02110,

United States

(617)314-3950

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Latest Covington Associates News

NMS Capital Announces Partnership with and Investment in Surplus Solutions

Dec 18, 2023

December 8, 2022 New York, NY, December 6, 2022 – NMS Capital (“NMS”) announced today that it haspartnered with Company management in the recapitalization of Surplus Solutions LLC(“Surplus Solutions” or the “Company”). Terms of the transaction were not disclosed. Founded in 2006 and headquartered in Woonsocket, RI, Surplus Solutions is a leadingprovider of Equipment Lifecycle Management (ELM) services focused on procuring andreselling clinical laboratory and processing equipment from and to the biotechnology,pharmaceutical, and nutraceutical end-markets. Through its robust and actively cultivatednetwork of sourcing relationships, the Company obtains clinical laboratory equipment acrossa wide array of sizes and use cases either via outright purchase or through consignment. Thisequipment is subsequently resold through various channels to a large and diverse buyeruniverse comprised of life sciences market participants in search of a solution to the variouschallenges associated with clinical laboratory equipment management and procurement. As of 2022, the U.S. market for biopharma R&D, processing, and laboratory equipment wasestimated to represent nearly $12bn in annual spend. Additionally, this market was projectedto grow to over $20bn by 2027, a result of increased investment and activity within the drugand pharmaceutical development sector generally. Further, ELM providers like SurplusSolutions focus and specialize on the subset of this demand reserved for secondhand andused equipment, a subsector estimated to represent approximately 25% of the broadermarket. This increasing demand for equipment coupled with a shortage of viable solutionsfor inventory disposal represents the cross section wherein Surplus Solutions and other ELMproviders operate. “Surplus Solutions occupies a unique position within the broader life sciences equipmentmarket, allowing us to address the needs of buyers and sellers alike in search of superiorinventory management solutions,” said Joe D’Alton, Founder & President of SurplusSolutions. “Our partnership with NMS comes at a critical moment and inflection point in ourCompany’s history. Given NMS’ experience in the ELM space and their track record in workingwith founder-owned businesses, we are excited to execute upon Surplus Solutions’ nextphase of growth with their support and assistance.” “We are thrilled to partner with Joe D’Alton and the team at Surplus Solutions. The Companyhas separated itself as a leader within the equipment lifecycle management and outsourcedpharmaceutical services arenas, two sectors we are intimately familiar with and focused onthrough NMS’ thematic investing approach,” commented David Peterson, NMS ManagingDirector. In 2021 NMS invested in DirectMed Parts & Service, a leading medical imaging parts,systems, and service company. “We are excited to work with the Surplus team to drive thenext stage of the Company’s growth through geographic and inventory expansion, strategicM&A and investments in infrastructure, operations, and other key support functions.” “Drug development and research has benefited from and grown in step with market tailwindsand increased investment within the broader life sciences sector. Market participants,though, still face challenges related to inventory management and equipment procurementincluding pricing pressures and supply chain troubles. Surplus’ business model addressesthose challenges and positions the Company for continued market share capture as a result,”added Colin Durney, NMS Vice President. The NMS deal team also included Kevin Jordan and Colin Moran. McDermott Will & Emery LLPprovided legal counsel to NMS. Covington Associates LLC acted as financial advisor to SurplusSolutions while Duffy & Sweeney LLP provided legal counsel to the Company. Twin BrookCapital Partners LLC provided debt financing to support the transaction. About Surplus Solutions Founded in 2006 and headquartered in Woonsocket, RI, Surplus Solutions is a leadingprovider of Equipment Lifecycle Management (ELM) services focused on procuring andreselling clinical laboratory and processing equipment from and to the biotechnology,pharmaceutical, and nutraceutical end-markets. For additional information on SurplusSolutions, please visit the Company’s website at www.ssllc.com . About NMS Capital Founded in 2010, NMS Capital is an experienced private equity firm managing assets in excess of $1.5 billion. Since inception, NMS has partnered with management teams in over 115 investments and follow-on acquisitions across defined investment themes within the Business Services and Healthcare Services industries. The firm’s principal strategy is to create long-term value by providing strategic and operational resources to growth-oriented companies led by founders or experienced management teams. NMS has successfully built industry leading lower middle market companies in defensible and scalable end markets by accelerating organic and acquisition-driven growth. For additional information on NMS, please visit the firm’s website at www.nms-capital.com. Follow NMS Capital on www.linkedin.com/company/nms-capital . For Further Information

Covington Associates Frequently Asked Questions (FAQ)

  • Where is Covington Associates's headquarters?

    Covington Associates's headquarters is located at 99 Summer Street, Boston.

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