Pharma wholesaler lands £26m ABL funding
Walsall-headquartered pharmaceutical wholesaler, CST Pharma (CST), has secured a £26m asset based lending facility from HSBC UK to drive its expansion.
In the last three years, CST Pharma has grown by forming partnerships with Acre Pharmacy, as well as acquiring Spanish wholesaling company Saima Productos y Servicios SL.
The funding from HSBC UK will provide increased liquidity to the enlarged group of companies to enable the purchase of additional stock, allowing the group to expand its team with 25 more hires, and up to 10 more planned for the coming month.
Jason Yates has worked in the business since 2006 and acquired CST Pharma in 2018, implementing a new board and management structure. This has enabled the company to maintain its position as one of the UK’s top specialists in the import of branded pharmaceuticals, generic medicines, medical appliances, clinical dressings, diagnostics and more. The funding from HSBC UK, advised by Shoosmiths and Gordon Brothers, has also allowed CST Pharma to upgrade its IT systems and improve its quality management system, boosting operational efficiency.
Yates said: “Since acquiring CST Pharma, we have been striving to grow the business. The support we received from HSBC UK has been invaluable in allowing the purchase of more stock, so we can meet this objective and develop the business to its full potential, as well as improving our systems to ensure the sustainability of the company.
“I’d like to thank my business development director at HSBC UK, Sam Owen, who I’ve worked with closely for the last three years. I’m delighted to have secured this deal with him.”
Bill Dwight, relationship director at HSBC UK, added: “We’re delighted to have been able to support CST Pharma with this significant facility and become its dedicated finance partner. The company has skilfully navigated the challenges brought about by COVID-19 and Brexit, and the funding package will allow CST Pharma to continue to grow and pursue its strategic priorities. This will result in the onboarding of more staff and be beneficial to the local area.”
