Clinical trials firm Synexus sold for £83m
OUTSOURCED clinical trails company Synexus has changed hands in a £83m secondary buyout deal.
The Chorley and Manchester-based company which was taken private from AIM by private equity firm Lyceum Capital in 2007 for £18m, has been acquired by LDC’s Manchester office.
Synexus works for many of the world’s largest pharmaceutical companies including AstraZeneca, Glaxo SmithKline and Pfizer, for which it recruits and treats patients in clinical trials in support of drug research.
After significant investment and international growth under Lyceum’s ownership, LDC is promising more of the same, particularly in international markets.
Synexus operates a network of 25 owned Dedicated Clinical Research Centres (“DRCs”) in eight countries including the UK, Germany, Poland, Hungary, Romania, Bulgaria, Ukraine, and South Africa, which enables it to access a population of over 68 million potential patients on behalf of its clients.
In addition, it has a network of 25 complementary affiliate sites. It employs more than 600 people including 100 physicians solely dedicated to delivering trials.
LDC is backing the management team’s plan to grow Synexus’ market share both organically and by acquisition – it has several targets on its radar which would boost its customer offering and its geographic footprint.
The transaction sees Lyceum Capital exit its investment in full. It wasled by LDC director Ged Gould and investment directors Simon Braham and Chris Wright. The transaction is subject to competition clearance in Germany and is expected to complete in March 2015.
Andrew Aylwin, board member of Synexus and partner at Lyceum Capital, said: “When we initially invested in the business in 2007, Synexus was a company with great potential in a growing market which nevertheless lacked the scale, infrastructure and operational strategy to capitalise fully on opportunities. With our backing, the business has been transformed into unquestionably one of the leading clinical trials specialists in the world.”
Ged Gould, director and joint head of LDC in Manchester, said: “The pharma industry, alongside the rapidly expanding biotech sector is set for significant growth in the future driven by ageing populations and increasing R&D.
“This is an exciting area for investment and Synexus is leading a new generation of businesses offering expert clinical trial support that can help accelerate drug development for the benefit of patients.
“Christophe and the management team have done a fantastic job in building an international network and one of the top global players in this nascent industry in recent years and we are eager to further support the ongoing growth and help the business to break into new markets via both greenfield site openings and potential acquisition opportunities in the US, South America and Asia.”
Dr Christophe Berthoux, CEO of Synexus, added: “Our services are critical to therapy development within some of the world’s leading pharma and biotech businesses, which provide a significant opportunity for us to take advantage of increased investment in our infrastructure and operations.
“Partnering with LDC provides us with the firepower and expertise to continue the expansion of our international network, allowing us to capitalise on further opportunities in the markets in which we operate.”
Bluebay and HSBC provided debt facilities to support the transaction
LDC was advised on due diligence by EY (corporate finance, commercial due diligence), Deloitte (financial due diligence) and Dr Regenold, while DLA Piper provided legal advice, led by James Kerrigan. The vendors were advised by Fairmount Partners (Neal McCarthy), Travers Smith, KPMG and LEK.
