(Bloomberg) -- Private equity firm GTCR has agreed to buy a majority stake in laboratory services company PathGroup Holdings LLC from Pritzker Private Capital, according to people familiar with the matter.

The deal values values Tennessee-based PathGroup at about $1.2 billion including debt, said one of the people, who asked not to be identified because the information was private. The current management team, including Chief Executive Officer Ben Davis, will be reinvesting as part of the transaction while the Pritzker family investment firm will retain a minority stake, they said.

A representative for Chicago-based GTCR declined to comment. 

PathGroup provides services including anatomic pathology, digital pathology, molecular diagnostic and clinical testing services, according to its website.

The Pritzker firm is led by Tony Pritzker, one of the heirs to the Hyatt Hotels Corp. fortune as well as a family civic legacy that includes his brother currently serving as Illinois governor. The firm, which bought PathGroup in 2016, has backed the company with acquisitions, including SkinDX and Pathology Consultants. 

Latham & Watkins provided legal counsel to GTCR, the people said. Bank of America Corp. and Nomura Holdings Inc. served as co-financial advisers and Kirkland & Ellis served as legal adviser to PathGroup.

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