Silverfleet Capital to invest in Aesica Pharmaceuticals

Silverfleet Capital, the European private equity firm has today agreed to invest in Aesica Pharmaceuticals, one of the UK’s fastest growing companies. Completion, which is subject only to obtaining clearance from the German authorities, is expected to occur within the next four weeks.

Headquartered near Newcastle, Aesica Pharmaceuticals has the expertise to both develop and manufacture primary (API) and secondary stage (finished product dosage forms) pharmaceuticals. Aesica Pharmaceuticals partners with pharmaceutical companies throughout the key stages of a drug’s life cycle to supply product from the early stage through to final commercial supply.

Silverfleet Capital has agreed a majority investment with Aesica Pharmaceuticals replacing that of LDC and members of Aesica Pharmaceuticals’s Executive will reinvest a significant amount of money for a large minority stake. Debt is being provided by Lloyds, HSBC and Yorkshire Bank.

Healthcare is one of Silverfleet Capital’s core sectors. During the past 12 months the firm has realised excellent returns from successfully selling Sterigenics International and European Dental Partners (EDP), two international healthcare businesses within its portfolio. Key to the success of both Sterigenics and EDP was the delivery of strong earnings growth through the successful execution of buy and build and roll out strategies which extended their international footprint.

Aesica Pharmaceuticals is one of the top 12 pharmaceutical contract manufacturers globally, and has manufacturing and development facilities in the UK, Germany and Italy and forecasts turnover in excess of €180 million for 2011. The company’s unique proposition lies in its flexible and bespoke approach to service delivery, coupled with its ability to develop products from the initial clinical stage through to final commercial supply. Furthermore, the long established and proven expertise within Aesica Pharmaceuticals enables it to provide primary and secondary contract manufacturing services to the highest possible regulatory standards. It is this full-service offer, its dedication to exceptional standards of service and its ability to deliver innovation and added value for its clients that sets Aesica Pharmaceuticals apart from its counterparts. The company recently ranked number three in the Sunday Times Deloitte Buyout Track 100 for 2011, having grown every year for the last three years.

Adrian Yurkwich, the partner at Silverfleet Capital with responsibility for healthcare who led the transaction, will join the board as a non-executive director. Adrian commented: "Global outsourcing of pharmaceutical manufacturing was worth $44bn in 2010 and is forecasted to grow at c.7% per annum for the foreseeable future. Aesica Pharmaceuticals is in a strong position to benefit from that growth through further expanding its international footprint in Europe, the US and Asia and by increasing the number of strategic partners it works with."

"Aesica Pharmaceuticals has an excellent management team who have achieved very impressive growth and we look forward to working in partnership with them."

Dr Robert Hardy, CEO of Aesica Pharmaceuticals, added: “We have known the team at Silverfleet Capital for a number of years and chose them as our financial partner because of their deep knowledge of our market and their experience and successful track record of building global businesses of scale though buy and build strategies.

"Aesica Pharmaceuticals is founded on over 30 years of pharmaceutical manufacturing expertise. Most recently the three recent acquisitions of manufacturing sites in Germany and Italy demonstrate our commitment to enhancing Aesica Pharmaceuticals’s service offering to the global pharmaceutical and biotechnology industries. The support from Silverfleet Capital will prove invaluable as we continue to expand into new markets, evolve and grow."

Also working on the deal for Silverfleet Capital were David Mackenzie, who also joins the board as a non-executive director, and Joachim Braun from Silverfleet Capital’s Munich office.