LDC completes £130million Quantum Pharma float

Quantum Pharma Plc, a growing manufacturer, supplier and service provider to pharmaceutical wholesalers, retail pharmacy, hospitals, pharmaceutical companies, homecare and care home markets, which is backed by LDC, has today commenced dealings on AIM following the successful pricing of the company’s IPO.

The business’ over £130illion enterprise value on London’s AIM market will raise gross proceeds of £106.1million.

The deal represents LDC’s ninth exit of the year and follows the IPOs of United Legal Services and Fever-Tree in September and November 2014, respectively.

LDC backed the £32.5million management buyout of the business (formerly Quantum Specials) in February 2009. During its tenure, LDC supported a number of bolt-on acquisitions including that of Colonis, Protomed and Tomms to help broaden the business’ service offering.

Based in Burnopfield, County Durham, Quantum Pharma now employs 320 people. It has a range of around 22,000 special and special obtain products and regularly services 6,500 pharmacies and over 240 hospital accounts across the UK. The group recorded revenues of £53.49million for the year ended 31 January 2014 and adjusted EBITDA of £9.13million.

As part of the IPO process, LDC were keen to hold an ongoing stake in the business given the growth prospects from the newly licensed Colonis products and the desire of the management team to retain a material stake. Following the IPO, LDC will retain an 8.2 per cent equity stake, with directors and senior management of Quantum Pharma retaining approximately 8.5 per cent of the issued share capital.

The flotation will support Quantum Pharma’s strategy to develop its product base and range across its five core business units in Quantum Pharmaceutical, U L Medicines, Colonis Pharma, Biodose and Quantum Aseptics.

John Garner, Head of LDC in Yorkshire and the North East, who was LDC’s representation on the Quantum board and supported on the IPO by Investment Manager Jane Gilbert, said: “The high levels of institutional demand during placing is indicative of the quality business that the management team at Quantum Pharma have developed. The public markets offer the business a great opportunity to broaden its investor base and take on more funding to accelerate its growth strategy in the UK and abroad in response to growing demand for specialist pharmaceuticals.”

Andrew Scaife, Chief Executive Officer of Quantum Pharma Plc, said: “LDC has been an extremely supportive partner over the past five years in providing the necessary investment to deliver a number of strategic acquisitions and provide transformative change to our facilities and product offering. Now that we have established our position as a market leader in the UK niche pharmaceutical market, the listing on AIM will help take us to our next stage of development as we target further growth.”

Quantum Pharmaceutical was advised by John Goold at Zeus Capital Limited and Craig Swinhoe at Muckle LLP.

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.