Aesica plans expansion in US & Asia after investment

By Natalie Morrison

- Last updated on GMT

Related tags: Investment

CDMO Aesica is to add manufacturing capacity in Asia and the US following a cash injection from private equity firm Silverfleet Capital.

The investment comes just days after the contract development and manufacturing organisation’s (CDMO) current long-term investor, LDC, announced that it would exit their partnership.

Through its new agreement with Silverfleet, the firm hopes to finally take its first steps into US as well as Asian manufacturing; more than 18 months after it first laid plans on the table for expansion in new markets​.

Robert Hardy, CEO of Aesica said: “We have known the team at Silverfleet Capital for a number of years and chose them as our financial partner because of their deep knowledge of our market and their experience and successful track record of building global businesses of scale through buy and build strategies.

“Our long term strategic plan was to establish a manufacturing presence in the US and Asia in 2012 and with the support from Silverfleet Capital we can continue to expand into new markets, evolve and grow more swiftly.”

Time for a change

Though US/ Asia plans have yet to come to fruition, the company has enjoyed a whirlwind 18 months in other areas, in which it journeyed into the continental European manufacturing market for the first time, acquiring three UCB plants across Germany and Italy​.

The company’s rapid growth in 2011 has resulted in a predicted turnover of $240 (€180m).

However private equity firm LDC still chose to take exit, leaving Aesica’s future investments in the hands of financial supporters such as Lloyds Bank Corporate Markets Acquisition Finance, HSBC and Yorkshire Bank.

A spokesperson for LDC – a mid-market private equity house – told “Our partnership with Aesica dates back to 2004 when the business had 150 employees at one European-based site, and sales of about $33m.

“We’ve seen the company through a series of investments, which have resulted in a growth to €180m ($240m), and a staff increase to 1300 across six sites in Europe.

“We’ve been on a big journey with Aesica over that period of time, and it’s normal to seek other businesses when we’ve crystalized our partnership.”

Forward thinking

Silverfleet is now confident that Aesica’s growth will continue with the same force through its plans to expand its foothold in the global market.

Adrian Yurkwich, the partner at Silverfleet Capital responsible for healthcare, added that Aesica will also look to new strategic partnerships as part of its strategy.

He said: “Global outsourcing of pharmaceutical manufacturing was worth $44bn in 2010 and is forecasted to grow at circa 7% per annum for the foreseeable future.

“Aesica is in a strong position to benefit from that growth through further expanding its international footprint in Europe, the US and Asia and by increasing the number of strategic partners it works with.”

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