Bain picks up state-owned Plasma Resources UK for £230m

Following the deal, Bain plans to invest more than £50m in PRUK to ramp up production capacity, refurbish facilities, create new products and grow the company's geographical reach.

The Department of Health has retained a 20% stake in the group. No debt was used to finance the deal. Bain provided £90m in cash for the deal and will supply a deferred payment of £110m in five years' time.

The deal highlights the UK government's push for privatisation and has naturally sparked much controversy. Crossbench peer Lord Owen, former member of Terra Firma's advisory board, has condemned the deal as he believes national health assets are not suitable for private equity ownership as there is limited protection compared with the strict governance of publicly quoted companies.

Company
Founded in 1950 as part of the Lister Institute by the Medical Research Council, the group first manufactured specific immunoglobulins in 1972.

PRUK's Bio Products Laboratory develops plasma products from blood received from donors. Plasma products are used in the treatment of blood coagulation disorders, autoimmune diseases and immune deficiencies.

In 2011 the company reported sales of £123m. The company is based in Elstree, near London. It also operates from 32 sites in the US controlled by DCI Biologicals.

All plasma used in research work is collected from US donors due to the theoretical risk of contamination with variant Creutzfeldt-Jakob disease, the human form of BSE, which cannot be accurately tested for.

Advisers
Vendor – Mansfield Advisors (Commercial due diligence); Lazard (Corporate finance).

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