Abbey Pharma closes £2m BGF-backed deal to support acquisition plans
Specialist pharmaceutical company has used investment to purchase Peckforton Pharmaceuticals
Specialist pharmaceutical firm Abbey Pharma Ltd has raised £2m funding from the Business Growth Fund (BGF) to drive its “buy-and-build” acquisition strategy.
The deal, which sees BGF take a minority equity stake in the company, also involved senior debt funding from Natwest.
Founded in 2009, Maidenhead-based Abbey Pharma manufactures, distributes and sells prescription and ‘Over the Counter’ (OTC) products to both the NHS and pharmacy wholesalers.
The “fast growing” business has already utilised the investment to purchase a rival specialist pharmaceutical brand; Crewe-based Peckforton Pharmaceutics, from the RisingStars Growth Fund and Coalfields Enterprise Fund.
Said to take total combined revenue to over £8m, the acquisition has doubled Abbey Pharma’s size and added new and “complimentary” products to its offering.
Abbey Pharma CEO, Kevin James, said of the deal: “We’ve been speaking to BGF for some time now and they have been very supportive in their approach.
“We are confident that they are the right fit for us and they have a good track record of helping companies to expand through acquisition.
“We are thrilled that with their backing, we are now able to take advantage of these [acquisition] opportunities and look forward to working with them.”
James Austin, BGF investment director, added:
“In Abbey Pharma we are backing a first class team in a rapidly expanding business with a strong platform for acquisitive growth.
“The focus has been on building the therapeutic side of the business and delivering growth in specific areas and we are excited to be partnering with the team to help accelerate this strategy.”