LDC’s Quantum floats with £125m market cap
LDC-backed Quantum Pharma, a UK manufacturer of tailor-made medicines, has raised £106.1m in its IPO on the AIM of the London Stock Exchange, giving it a market-cap of £125m.
The flotation also gives Quantum an enterprise value of £130m.
Quantum placed 106.1 million shares - both new and secondary - at a price of 100 pence each.
LDC has retained an 8.2% stake following the flotation, while Quantum's directors and senior management have held onto an 8.5% shareholding.
Zeus Capital acted as nominated adviser and broker for the flotation.
The listing comes just one year after the undercover investigation carried out by The Telegraph in which Quantum was involved regarding private pharmas using underhand methods to maximise payments received from the NHS.
Previous investment
LDC acquired Quantum in January 2009, investing £14m as part of the £32.5m management buyout of the company. Yorkshire Bank Corporate and Structured Finance provided an £18.5m senior debt and working capital facility package.
LDC won the business in an auction process led by KPMG, according to unquote" data. The acquisition generated an exit for corporate shareholder Phoenix Medical Supplies and other founding shareholders.
At the time of LDC's buyout, the company was known as Quantum Specials. This changed to Quantum Pharmaceutical in 2010.
Company
Founded in 2004 and headquartered in Burnopfield in County Durham, Quantum is a manufacturer of non-standard, tailor-made medicines - known as ‘specials' - for the wholesale and retail pharmacy, hospital, homecare and care home markets.
The company operates through five divisions: specials manufacturer Quantum Pharmaceutical; medicine importer UL Medicines; pharma development and regulation specialist Colonis; medicine delivery system Biodose; and aseptic product manufacturer Quantum Aseptics.
The company employs 320 staff and generated £53.9m in revenues this year, as well as an adjusted EBITDA of £9.13m. At the time of LDC's investment in 2009, the company employed 100 staff and recorded £22m in revenues.
People
Andrew Scaife is the CEO of Quantum. John Garner is head of LDC's Yorkshire and north east operations; he sits on Quantum's board of directors and worked on the company's IPO alongside investment manager Jane Gilbert.
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