Consort Medical

Leading pharmaceutical manufacturer, Aesica, has today announced plans for further growth and expansion following significant investment from Silverfleet Capital, the European private equity firm.

Subject to regulatory clearance from the German authorities, which is expected to occur within the next four weeks, Silverfleet Capital has agreed a majority investment with Aesica and members of the Aesica Executive have reinvested for a large minority stake in the company. Financial support will be provided by Lloyds Bank Corporate Markets Acquisition Finance, HSBC and Yorkshire Bank and additional corporate support will continue to be supplied by PricewaterhouseCoopers, Ernst & Young and Ward Hadaway.

The investment will enable Aesica to continue its rapid expansion into new markets and achieve its vision of becoming the number one supplier of Active Pharmaceutical Ingredients and Formulated Products to the global pharmaceutical industry. With six manufacturing sites across Europe and sales representation across the US, Europe and Asia, Aesica plans to build on the success of 2011, which has resulted in forecasted turnover of €180m and extend its current capabilities and global manufacturing facilities.

Silverfleet replaces LDC as Aesica’s long-term partner. Since the original 2004 investment LDC has provided management with financial and strategic support to implement a rapid and impressive expansion plan. This has focused on enhancing Aesica’s manufacturing capabilities, developing new service lines, adding new products to its portfolio and increasing its presence in major international growth markets.

Dr. Robert Hardy, CEO of Aesica says: “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 through buy and build strategies.

“Aesica is founded on over 30 years of pharmaceutical manufacturing expertise. Most recently the three acquisitions of manufacturing sites in Germany and Italy demonstrate our commitment to enhancing Aesica’s service offering to the global pharmaceutical and biotechnology industries. Our long term strategic plan was to establish a manufacturing presence in the US and Asia in 2012 and with the support from Silverfleet Capital we can continue to expand into new markets, evolve and grow more swiftly.”

Healthcare is one of Silverfleet Capital’s core sectors. Previously Silverfleet Capital has invested in Sterigenics and EDP.  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.

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 adds: “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 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 has an excellent management team who have achieved very impressive growth and we look forward to working in partnership with them.”

Aesica is a leading full-service provider of contract research, development and manufacturing services for Formulated Products and Active Pharmaceutical Ingredients. The company develops long-term strategic partnerships with its clients, responds quickly and effectively to market demand and develops tailored solutions for specific requirements.

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