Forensics group LGC seeks buyer

EUROPE'S biggest privately-owned forensic services group is quietly being put up for sale with an expected price tag of about £80m.

LGC, the former State-owned Laboratory of the Government Chemist, carries out services ranging from DNA paternity tests to drink-driving analysis and food safety checks.

Its technology includes the ability to discover evidence of cocaine and heroin use from hair samples, while its veterinary division includes tests aimed at eradicating diseases such as scrapie. Its clients range from police and coroners to companies such as BP and ICI.

LGC was bought by its management and staff with the backing of venture capitalist 3i when the Conservatives privatised the service in 1996.

Led by chief executive Dr Richard Worswick, LGC's turnover last year hit a record of £52m with profits of £5.5m.

The sale, handled by Ernst & Young, could affect attempts to part-privatise the Forensic Science Service, which analyses forensic samples for police investigations.

Home Secretary David Blunkett announced plans to float part of FSS last month. LGC/3i was cited as a likely bidder. The LGC and FSS sale plans have attracted interest from venture capitalists.