A leading pharmaceutical contract manufacturer
Aesica Pharmaceuticals (“Aesica”) is one of the world’s top 10 pharmaceutical contract development and manufacturing organisations (“CDMOs”). Headquartered near Newcastle upon Tyne, Aesica runs state-of-the-art facilities and employs approximately 1,300 staff members at six development and manufacturing sites in the UK, Germany and Italy.
- Fast-growing CDMO market
- Well-positioned to win new contracts and acquire sites in new geographies
- International business in core healthcare market
Silverfleet Capital has a strong track record within the healthcare sector, one of our core markets, and Aesica’s reputation within the marketplace as such a high quality CDMO partner made it well positioned to win new contracts and to acquire further sites in new geographies.
Silverfleet invested in Aesica in 2011 and since then have supported Aesica’s continued success in securing drug manufacturing projects through a combination of organic growth, continuous process improvement and investment in capacity.
As with Sterigenics, another international healthcare business where we funded several large capex projects, Silverfleet aimed to increase the processing capacity of Aesica through the expansion of their production facilities.
In particular, Silverfleet supported a £30 million investment at Aesica’s Queenborough site, which doubled the site’s solid dose manufacturing capacity, making it the UK’s largest new pharma facility in 2013. This investment included a facility that is now producing a tableted medication used to treat Type 2 diabetes in adults, a “blockbuster” product of one of the world’s largest companies.
In the last ten years the business has increased revenue and staff numbers tenfold.
At the cutting edge of drug development
Following our acquisition, Silverfleet appointed David Greensmith, former COO of Avecia Group, as Chairman in 2012, with a further two new executive board appointments made the following year. With this new management team in place, Aesica achieved sales of £179 million (a 16% increase from 2011) and an adjusted EBITDA of £20 million (a 27% uplift compared to 2011) for the year ended December 2013.
With the company’s valuable strategic position in the CDMO sector secured, and continued strong financial performance, Aesica attracted several strategic trade purchasers. Ultimately the international healthcare company Consort Medical plc tabled a very attractive bid of £230 million to acquire the business which generated a 50% IRR and 3.3x multiple of Silverfleet’s original investment.
international development and manufacturing sites
Aesica was named one of Britain’s fastest growing firms in the Sunday Times HSBC International Track 2012.