International company, Aesica Pharmaceuticals Ltd, which is headquartered in Newcastle, is to be acquired in a £230m deal.
The company, which generated adjusted EBITDA of £20m on revenues of £179m last year, will be purchased by Consort Medical plc in November, conditional on the approval of shareholders and clearance by the German competition authorities.
Aesica is one of Europe’s leading pharmaceutical contract development and manufacturing organisations (CDMOs), providing services to the global pharmaceutical industry.
Since being established in 2004, it has grown both organically and through acquisitions while developing key strategic relationships with major global blue-chip pharmaceutical companies.
Consort Medical plc is a UK company, listed on the London Stock Exchange, which focuses on developing and manufacturing disposable medical devices for drug delivery, including inhaled, nasal and injectables products through its core operating division, Bespak.
Jon Glenn, Consort Medical plc’s chief executive, said: “We are excited by the acquisition of Aesica which represents a very strong fit with our existing strategy of diversifying into adjacent markets and technologies to capture additional value in the drug/device supply chain.
“As one of Europe’s leading pharmaceutical CDMOs, Aesica is highly complementary to Bespak’s existing business and provides a number of clear strategic, competitive and value-enhancing benefits for the Enlarged Group.”
Dr Robert Hardy, founding chief executive of Aesica, said: “We are proud of what we have accomplished with Silverfleet Capital’s support in developing Aesica through a combination of organic growth, continuous process improvement and investment in capacity.
“We continue to see many exciting opportunities in the pharmaceutical contract manufacturing sector and we look forward to pursuing these under the ownership of Consort Medical plc.”
Paul Mankin, partner at PwC in Newcastle, who acted as the seller’s corporate finance adviser, said: “Aesica has recently celebrated the 10th anniversary of the original MBO from BASF and it has been fantastic to work with the management team throughout that period as they have developed Aesica into the global contract development and manufacturing organisation that it is today.
“It is also encouraging to see the region following the trend for rising M&A activity fuelled by corporate interest in strong businesses.”