Funding package to support Aesica Pharmaceuticals
Aug 4 2010 by Iain Laing, The Journal
NORTH East corporate financiers arranged a £20m funding package to support the latest episode in the rapid expansion of drug maker Aesica Pharmaceuticals.
The fast-growing Newcastle company has just used the fund to make its third acquisition in four years and is eyeing more takeover targets in Europe and the US.
Aesica, which has factories in Cramlington, Kent and North London, added Nottingham-based research and development company R5 to its portfolio.
The company, which was formed in 2004 in a management buy-out backed by private equity firm LDC, has made good use of the £20m funding package devised by Lloyds TSB Corporate Markets acquisition finance, the division of the bank which provides leveraged finance to support the growth strategies of private equity-backed businesses.
The facilities give Aesica access to the capital required to support its ongoing programme of organic growth and strategic acquisitions which, over the past six years, has seen it triple turnover to around £100m and boosted its workforce from 140 to 750 employees.
In addition to the new funding line, Lloyds TSB Corporate Markets’ relationship team in Newcastle will provide day-to-day banking services for Aesica.
Severa other North East advisers were involved in agreeing the funding package, including law firms Ward Hadaway and Dickinson Dees. Peter Considine of Walker Morris acted on behalf of the bank.
Simon Dixon, associate director, Lloyds TSB Corporate Markets acquisition finance, said: “Aesica is a well-invested business with strong revenue streams and is ideally positioned to capitalise on increasing demand for outsourced manufacturing from the global pharmaceutical industry.
“The new flexible facilities will meet the company’s future working capital, capex and acquisition funding requirements and enable it to maintain its impressive rate of growth.
“This deal demonstrates the bank’s appetite to support market-leading firms like Aesica which are operating in growing global markets and which boast top-class management teams backed by supportive private equity sponsors.”
Dr Robert Hardy, chief executive of Aesica, said: “This new funding agreement will facilitate our continued expansion and enable us to achieve our vision of becoming the leading supplier of APIs and formulated products to the global pharmaceutical and biotechnology industries.”
Aesica, which saw its annual bottom- line profits rise to £15m from £2.2m, has recently opened US offices in New York and San Diego. It also has a site in Shanghai.
Dr Hardy recently said the company is currently considering a number of takeover targets overseas as part of its expansion plans: “We are still looking overseas for a formulation manufacturer in the US and Europe.”
