CBPE Capital LLP (“CBPE”), the mid-market private equity firm, has sold Rosemont Pharmaceuticals (“Rosemont”) to Perrigo Company (“Perrigo”) the $10bn US listed Pharmaceuticals business for a consideration of £183m.
CBPE acquired Rosemont in August 2006 for £93m. The sale to Perrigo represents an investment multiple of 3.25x CBPE’s £52m equity investment over the investment period for CBPE’s investors.
Rosemont develops, manufactures and supplies oral liquid medicines for patients who have difficulty in swallowing tablets and capsules. Its customers include hospitals, wholesalers and retail pharmacies. Rosemont’s range of medicines improves the lives of patients with swallowing difficulties which typically affect the elderly and young children.
CBPE has funded significant investment in Rosemont, notably a £6m investment in the Leeds manufacturing facility to expand capacity, and a doubling of the R&D and regulatory affairs personnel to a team of 35. Rosemont employs 209 staff in total, up from 156 at the time of the original investment.
Rosemont is the clear market leader in the supply of oral liquid pharmaceuticals, and under CBPE has started to develop its international business as its products are licensed internationally.
The company’s portfolio extends to 94 products compared to 58 at the time of acquisition, and this growth has driven a more than doubling of EBITDA from £9m in 2006 to £19.2m in 2012.
CBPE was advised by Rothschild.
Sean Dinnen, Partner of CBPE, who led the original investment and sat on the board of Rosemont said: “We are very pleased with the significant progress Rosemont has made, which illustrates the strength of our investment strategy and the long term approach we take to our portfolio companies, supporting management to build a truly world class business.”
John Blythe, CEO of Rosemont said: “Rosemont is now a clear market leader and recognised globally as a leading innovator in the field of liquid medicines, a market with highly attractive long term growth fundamentals. CBPE have been an outstanding, knowledgeable partner, fully supporting us as we have grown the business. Now we look forward to the continued development of the business.”