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LDC makes nearly 3x in £127m Penn Pharmaceuticals sale to trade partner

29 Jul 2014

pills-755993-mLloyds Bank’s private equity spin off LDC has agreed to sell its stake in pharma manufacturer Penn Pharmaceuticals to strategic investor Packaging Coordinators for £127m.

The private equity firm first invested £33min Penn in April 2007. Since then LDC has worked with the drug development company’s management team to implement a strategic growth plan.

Staff numbers have grown 47 per cent to 300 people since LDC’s investment and annual turnover has increased from £17m to more than £30m for the last fiscal year.

The private equity firm expects to make nearly three times return on its invested capital.

Wales-based Penn provides a selection of services to leading pharmaceutical and biotech companies.

In September 2013 the business opened a £14m, 15,000 square foot purpose-built manufacturing facility in South Wales to enable it to develop and make tablets and capsules containing highly potent compounds.

LDC’s Candida Morley said: “Since investing in Penn, we have worked closely with the management team to enhance the business’ capabilities as a manufacturer of highly potent compounds.

“The new purpose-built facility in South Wales has enabled the business to compete more effectively on a global scale, thereby driving future revenue and shareholder value.”

The transaction with Penn represents LDC’s seventh strategic exit in the last twelve months.

In the past 18 months, LDC has invested more than £600m of new funding, together with more than £100m of growth capital to support portfolio business acquisitions. 

The firm specialises in management buy-outs, equity release, development and acquisition finance transactions.

In June LDC scored a four-times equity return through the £45m sale of MetroNet (UK) to ISIS Equity Partners after just two years of ownership.

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