Pharma group plots Â£125m AIM float
The parent of Hertfordshire-based U L Medicines has revealed plans to float on AIM and raise more than £100m. Quantum Pharma will list on London's junior market in December and be valued at £125m.
The group, which employs more than 320 staff, said the float would raise its profile and enable access to the capital markets for further equity funding in the future, should it be needed for acquisitions and acceleration of strategy.
The net proceeds of the £106m placing will be used to acquire the remaining shares of Kent-based product development business Colonis, repay a significant proportion of the company's debt and execute its growth strategy.
The company operates through five business units: Quantum Pharmaceutical, U L Medicines in Watford, Colonis, Biodose and Quantum Aseptics.
Andrew Scaife, chief executive of Quantum Pharma, said the decision to list on AIM makes "both strategic and commercial sense" as the business enters the next stage of its development.
"Having established our position as a market leader in the UK niche pharmaceutical market in which we operate, we feel that by joining AIM, Quantum will be able to capitalise on the fantastic market opportunities that are available to us both in the UK and overseas," he said.
Quantum's overall strategy is to become "the UK's leading provider of niche pharmaceuticals and services to the pharmacy, hospital, wholesale, home care and care home markets, and to supply these medicines with the highest available service levels and delivery solutions".
Quantum current services about 6,500 pharmacies and more than 240 hospitals accounts across the UK.
Through both acquisition and investment, the company has expanded into additional markets including aseptic compounding, medication regime adherence technology, the supply of medicines to home care and care home patients.
The group has also gained "significant product development expertise" through Colonis. Revenues for the year end 31 January 2014 were £53.5m.
A team at Zeus Capital comprising directors of corporate finance Nick Cowles and Andrew Jones, and assistant director Jamie Peel, acted as nominated adviser and broker to Quantum Pharma.