Focus Pharmaceuticals (United Kingdom) - Nov 2007

unquote
01 November 2007

Tweet
Facebook
LinkedIn
Google plus
Send to

Matrix Private Equity has completed the £6m buyout of Focus Pharmaceuticals. Matrix invested £3.2m in the form of an integrated debt and equity package to take a minority stake in the business. Management hold the balance after rolling over their stake. Smith Cooper Corporate Finance ran an auction process to facilitate the exit of a private shareholder. Matrix believes its use of an integrated debt and equity offering gave it a competitive advantage over the other private equity and trade bidders. “The integrated offering was attractive to the company because it made the deal quicker and easier to do. Management had to complete the deal by a specific date and dealing with only one funding partner made that more predictable,” commented Ashley Broomberg, who led the deal for Matrix. “From our perspective the debt provides an attractive, tax free running yield to our VCT investors,” he added. The deal took approximately 10 weeks to complete from exclusivity.

Matrix was attracted to the opportunity due to strong market drivers for generic pharmaceuticals arising from an ageing demographic in the UK and the continuing need to drive down healthcare costs by generic prescribing.

Company

Burton-upon-Trent-based Focus specialises in the licensing and marketing of specialist prescription generic pharmaceuticals. Originally part of ADL Healthcare until it was acquired by the current team in 2003, it identifies generic opportunities which fall outside the major generic pharmaceutical companies’ areas of expertise. In particular its portfolio comprises UK specific products, generally oral liquids, injectables, lotions and ointments that are difficult to source, develop and license. It employs 15 staff and has annual revenues in excess of £10m.

People

Ashley Broomberg and Jonathan Gregory led the deal for Matrix. Broomberg joins the board of the company as a non-executive director. Mark Cresswell is the managing director of the business.

Advisers

Equity - Cooper Parry, David Smith (Financial Due Diligence)Equity - Cooper Parry, Harvey Ingram, Heidi Hendon, Mathew Harvey (Legal)Management - CIL, Candy Leung (Commercial Due Diligence)Management - DWF, John Hartup, Steve Hartley (Legal)Management - Smith Cooper & Partners, Andrew Durbin (Corporate Finance)Management - Smith Cooper & Partners, Claire Beachell (Tax)