£2m management buy out at Manchester life-sciences firm

Private equity investor Foresight has backed a £2m management buy-out at the contract research business Epistem.

Manchester based Epistem is a life sciences services company which focuses on providing research services for both pre-clinical and clinical development across several specialist therapeutic areas, including oncology and inflammatory diseases.

Clients include several global pharmaceutical businesses, US Biodefence programmes and niche biotechnology companies.

Foresight’s investment, which includes an injection of growth capital, will support the management team’s plans for growth.

The business is planning to strengthen its sales and marketing activities across its international customer base.

The buy-out from current owners genedrive is led by Dr Catherine Booth, one of the original founders of Epistem and expert in epithelial stem cell biology.

Dr Booth will be supported by a strong executive team including operations director Julie Tudor, also one of the original founder members of Epistem, and a new sales director and finance director.

Foresight has introduced an experienced industry non-executive chairman, Dr Nick Ash.

Dr Ash was previously chief executive of Source BioScience plc, a lab services business where he helped grow revenues five-fold, creating an enterprise valued at over £70m.

This investment is the ninth by Foresight’s FRIF fund, adding life science services exposure and follows the recent investment in DA Languages which completed last month.

Bamburgh Capital advised Dr Booth on the terms of the buyout with genedrive and sourced funding support from Foresight.

Matthew Pomroy, investment manager at Foresight, said: “Epistem is a prime example of the type of company Foresight likes to support, a differentiated and customer-focused business with market leading expertise.

“Cath’s dedication and long-term involvement, combined with the new expertise from incoming Chairman Dr Nick Ash, gives us confidence that we will see the business go from strength-to-strength. We look forward to working with the team in the coming years.”

Dr Catherine Booth said: “We are delighted to partner with Foresight. Epistem has huge potential for growth and development.

“We have a clear list of initiatives for enhancing and expanding the business and are looking forward to meeting all our targets with the financial and strategic support of the team at Foresight.”

Dr Nick Ash added: “I am looking forward to working with Cath and the management team at Epistem to accelerate the growth of the business, and build a Company that excels in customer service and provides an outstanding environment in which to work.”

Foresight Advisers were Turner Parkinson led by David Easdown and Adrian Rogers.
Financial due diligence was carried out by DSW led by Catriona Lang.

Commercial due diligence was by RPL led by Roger Penney.

Management due diligence was by Catalysis led by Andy Airey

Management team advisers were Alex Clarkson of Bamburgh Capital and Shoosmiths led by Tim Jackson-Smith and Anna Kerrane.