Close Brothers Private Equity (“CBPE”), the UK mid-market private equity specialist, today announced it has backed the management buy-out of Rosemont Pharmaceuticals, a leading developer and manufacturer of oral liquid medicines. The purchase from previous owners, Savient Pharmaceuticals Inc., a NASDAQ-quoted US biotech, is valued at $176m (£93m).

CBPE is backing the incumbent management team, led by John Blythe, General Manager and Neil Salvin, Finance Director. Kevin James formerly MD of Wyeth UK joins the company as Chairman.

Rosemont is a highly specialised pharmaceutical business developing and manufacturing oral liquid formulations of off-patent solid dose pharmaceutical products. Currently Rosemont produces 94 oral liquid products and formulations.

The majority of the oral liquid medicines which Rosemont produce are unique as most pharmaceutical manufacturers, including the brand originators, do not often develop liquid versions of their products.

Rosemont’s oral liquids are prescribed to patients who are unable (due to swallowing difficulties) or unwilling to take solid dose medications. Most of these patients are either elderly or the very young.

The UK oral liquid pharmaceutical market is estimated to have grown at 20% per annum between 2001 and 2005 and Rosemont is the clear market leader.  Growth is driven primarily by an ageing population and a greater awareness of swallowing difficulties and problems associated with tablet crushing.

Rosemont, based in Leeds, has recently received FDA approval to distribute its first product in the United States. In addition it has invested significantly in its New Product Development resource which will allow it to increase the number of new oral liquid products it brings to market, which in many cases address an unmet medical need.

Sean Dinnen, a Partner with CBPE who led the transaction with Investment Director John Fisher, commented “We first became aware of Rosemont following a recommendation from another portfolio company, IDIS.”

“Rosemont is a high quality company in which we are delighted to have made an investment. The company operates in a clear, growing niche and has excellent opportunities to develop its range of products and to sell internationally.”

John Blythe, General Manager, said:
“We are delighted to have completed this deal with CBPE who we know to be a supportive backer of management teams. Rosemont has a strong independent future and hopes to continue to build on its leading UK position, whilst developing and exploring new markets, especially in the US and continental Europe.”

CBPE were advised on the transaction by Amethyst Corporate Finance, with management receiving financial advice from Park Place Corporate Finance.

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