#United States #Des Plaines #Stellus Capital #Northlane Capital #US Drug Testing

Stellus Capital Management's Investment in USDTL

Stellus Capital Management, LLC has recently made headlines by providing unitranche financing, alongside an equity co-investment, to facilitate Northlane Capital Partners' acquisition of United States Drug Testing Laboratories Inc. (USDTL). This collaboration not only underscores Stellus's commitment to fostering growth in specialized sectors but also highlights USDTL's long-standing reputation in forensic testing.

About US Drug Testing Laboratories (USDTL)

Headquartered in Des Plaines, Illinois, USDTL is recognized for its extensive suite of forensic toxicology services, primarily catering to hospitals, health systems, court systems, and employers. With an impressive employee count exceeding 160 and a robust customer base of over 1,000 across the United States and globally, USDTL has been a pioneer in forensic testing for more than three decades. The firm specializes in alcohol and substance use testing, leveraging innovative approaches to ensure reliable results.

Justin DuFour, a Partner at Northlane Capital Partners, expressed enthusiasm about the partnership. He noted, "For more than 30 years, USDTL has been an innovative leader in specialized forensic testing in the U.S. We are thrilled to be working alongside another founder-owned company and are well-positioned to support its continued expansion. We plan to leverage our network and experience as we implement value creation initiatives and expand USDTL's niche testing capabilities."

Colin Baker, Managing Director at Stellus, shared similar sentiments, acknowledging the synergies between Stellus, NCP, and USDTL. He remarked, "We appreciate the opportunity to partner with NCP and the USDTL team on this transaction. We believe USDTL is well-positioned to benefit from NCP's experience in the lab services sector during its next phase of growth."

The Future of USDTL

This investment marks a significant milestone for USDTL as it seeks to enhance its service offerings and expand its footprint in the market. With the backing of Stellus and Northlane Capital, the company is poised to enhance its capabilities and innovate further in forensic testing services. The combination of financial resources and strategic advice is expected to help USDTL navigate the complexities of the forensic toxicology landscape effectively.

Stellus Capital Management's proactive approach in the financing realm speaks volumes about its strategic vision to invest in sectors with growth potential. This collaboration promises not only to strengthen USDTL’s market position but also contribute positively to public health and safety through improved testing services.

In conclusion, the partnership among Stellus, Northlane Capital Partners, and USDTL is a commendable step towards enhancing forensic testing services, marking a new chapter for all entities involved. As USDTL moves forward, the industry eagerly anticipates the innovations and advancements that will stem from this fruitful collaboration.