Mid-market private equity firm CBPE Capital has sold Rosemont Pharmaceuticals to Perrigo, the USD10bn US listed pharmaceuticals business.
CBPE acquired Rosemont in August 2006 for GBP93m. The sale to Perrigo represents an investment multiple of 3.25x CBPE’s GBP52m 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 GBP6m 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’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 GBP9m in 2006 to GBP19.2m in 2012.
CBPE was advised by Rothschild.
Sean Dinnen, partner of CBPE, who led the original investment and sat on the board of Rosemont, says: “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, chief executive of Rosemont, says: “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.”
