Duke Street backs MBO of Kent and Athlone from DCC

Kenny Wastell
03 June 2019

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Duke Street has backed the management buyout of UK and Irish pharmaceuticals companies Kent Pharmaceuticals and Athlone Laboratories from trade vendor DCC Vital.

Financial details of the transaction remain undisclosed, though Duke Street typically invests in companies with enterprise values of £50-350m.

Sky News recently reported that Kent and Athlone represent a small portion of DCC's healthcare division, which itself accounts for 13% of the listed firm's profits. DCC has a market cap of £6.5bn.

The businesses will form the basis for an acquisitive growth strategy and will invest in the expansion of its range of products.

Duke Street has introduced former Wyeth Laboratories managing director Kevin James as non-executive chairperson at the new group.

Apera provided a term debt facility to support the transaction, in addition to an acquisition facility for future bolt-ons.

Company
Headquartered in Ashford and founded in 1986, Kent is a manufacturer and distributor of off-patent generic pharmaceuticals, including analgesics and penicillin. The business primarily sells its products through hospitals and pharmacy wholesalers.

Athlone is headquartered in Ballymurray, County Roscommon, and manufactures specialist beta-lactum antibiotics.

People
Duke Street – Charlie Troup (managing partner).
Kent Pharmaceuticals & Athlone Laboratories – Debashis Dasgupta (CEO).

Advisers
Equity – Results Healthcare (corporate finance); DLA Piper (legal); Goodwin Procter (legal).
Management – Liberty Corporate Finance (corporate finance).