Clearwater International has advised Peckforton Pharmaceuticals on its sale to Abbey Pharma, the specialist pharmaceuticals company.
The acquisition was supported by a £2m investment from growth capital investor Business Growth Fund (BGF), alongside senior debt funding from RBS. BGF will take a minority stake in the new group, with the investment used to fund the company’s buy-and-build strategy.
BGF’s investment has enabled Abbey Pharma to acquire Peckforton Pharmaceuticals from the RisingStars Growth Fund and Coalfields Enterprise Fund, managed by Enterprise Ventures and the North West Business Investment Fund, managed by YFM Equity Partners.
Peckforton Pharmaceuticals, based in Crewe, is a fast-growing company that manufactures, distributes and sells prescription and OTC products in the UK and Europe. The business is a UK leader in niche, generic injectable, solid dose and liquid pharmaceuticals and medicines for the hospitals and pharmacy market.
Based in Maidenhead and established in 2009, Abbey Pharma is a rapidly expanding business that has shown consistent year on year revenue growth, delivered by the incumbent management team, led by CEO Kevin James and COO Shafiq Choudhary. The combined business will have revenues of c. £8m.
The Group supplies to both the NHS and pharmacy wholesale markets to ensure the ongoing supply of pharmaceutical products with proven therapeutic value. Its current product line addresses therapeutic areas such as Ophthalmology, Oncology, Pain, Gastrointestinal and Dermatology.
The acquisition will add new and complementary products to Abbey Pharma, doubling the group’s size and establishing a platform to support future expansion plans. Both Enterprise Ventures and YFM Equity Partners are fully exiting Peckforton Pharmaceuticals following a period that saw the company’s sales treble.
Brian McEwan will join the business as chairman. Brian has over 30 years of experience in the pharmaceutical industry having previously held positions as MD of Amdipharm Mercury Company Ltd (AMCo) and COO of Waymade Healthcare plc.
A team at Clearwater International advised shareholders of Peckforton on the sale. The team comprised director Karen Edwards, director Ramesh Jassal and manager Richard Ellis.
Jassal, who is Clearwater International’s global head of Healthcare, said: “This deal represents the next stage of Peckforton’s development. The company has established itself within the UK generic drugs market by sourcing and supplying high quality injectable, solid and liquid medicines into the NHS, experiencing significant growth over the last three years. Being part of a larger organisation will enable the business to launch future products and take advantage of the strategic opportunities available, and Abbey Pharma will provide the firm with a platform to expand into European markets.”