Close Brothers Private Equity has backed thebuy-out of oral liquid medicines maker RosemontPharmaceuticals from Savient Pharmaceuticals in adeal worth 93m (136m). Nasdaq-listed Savientexpects around $140m (110m) in net proceeds.
Close Brothers is backing the incumbentmanagement team, led by general manager JohnBlythe and finance director Neil Salvin. Kevin James,formerly of Wyeth UK, will join as chairman.
Leeds-based Rosemont produces 94 oral liquidproducts and formulations, including corticosteroids,analgesics, diuretics and antibiotics. It employsaround 170 people.
New Jersey-based Savient announced in Februaryit was exploring strategic alternatives such as aspin-out or sale for its UK subsidiary.
Close Brothers became aware of Rosemonton the recommendation of one of its portfoliocompanies, IDIS, which imports and distributespharmaceutical products across the UK and Europe,said the firms Sean Dinnen.
He added that Close Brothers not only found thebusiness to be extremely interesting but that theoperations were non-core for Savient.
The market is still small, but Dinnen addedthat the penetration of liquid medicines hasincreased. Factors which will drive growth includean ageing population, plus greater awareness ofswallowing difficulties.
Rosemont intends to build on its home market aswell as develop and expand new markets, especiallyin the US and Europe. According to Dinnen, thecompanys previous owners did not explore growthopportunities in Europe all too strongly.
Rosemonts products are used by every regionalhealth authority in the UK and it recently receivedapproval from the Food & Drug Administration todistribute its first product in the US.