Gyrus announces new deal, appoints Tobin as partner

Julian Longhurst
30 January 2020

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Gyrus Capital has signed the acquisition of Essential Pharma and announced a new hire, Hannah Tobin.

The GP, which was launched early last year by former Argos Wityu partner Guy Semmens and Dr Robert Watson (formerly of Altaris and Hg), has confirmed the buyout of Surrey-based speciality generic pharma business Essential Pharma was signed just before Christmas.

The company is being acquired from its founding shareholders by the incumbent management, supported by a significant equity commitment from Gyrus's Cortex Fund, the deal-by-deal multi-asset vehicle that raised €240m in 2019. Leverage is being provided by Hayfin Capital Management.

The acquisition consideration has not been disclosed, though it is understood that only a relatively small portion of the €240m raised by the Cortex fund remains following this investment and the Gyrus-backed carve-out of DuPont Sustainable Solutions, which closed last summer. The two deals together represent a combined EV of around €400m.

Essential Pharma, based in Egham, Surrey, licenses and sells speciality pharmaceuticals in the UK and European markets. It specialises in low-volume, niche central nervous system (CNS) pharmaceutical compounds with high clinical importance.

Unquote understands that while Essential already has a strong and highly profitable model, the business would benefit from further product acquisitions in Europe, and potential add-ons.

Alongside the news of the Essential deal, Gyrus has announced that it has made another key appointment following the additions of Mirco Dilda, Alyson Greenwood and Cedric Perlet in the latter part of 2019. Hannah Tobin joins the team as partner and head of investor relations. She previously spent 19 years at HarbourVest Partners, where she focused on investor relations and primary fund investments.

Tobin's appointment comes ahead of a new fundraising drive, in which Gyrus intends to add to its Cortex fund and hold a first close for the Gyrus Principal Fund.