Case study

Quantum Pharmaceutical: Backed the journey to an IPO

Five year partnership saw trusted pharma company more than double revenues and triple employee numbers.

Sector
  • Healthcare
  • Industrials

Quantum Pharmaceutical is the UK’s trusted manufacturer and supplier of unlicensed medicines and hard-to-source products.

Deal type
  • Management buyout
Deal value

£32.5m

Exit type
  • IPO
Exit date

December 2014

Exit value

£130m

Quantum Pharmaceuticals, formerly Quantum Specials, is the UK’s most trusted manufacturer and supplier of unlicensed medicines and hard-to-source products. Quantum provides products that are essential to patients, often in the paediatric, psychiatric and palliative care sectors.

Established in 2004, Quantum provides 6,500 pharmacies and more than 240 UK hospitals with a range of around 22,000 special and special obtain products.

Investing for growth

LDC backed the management team in 2009 in a £32.5m management buyout, and during the partnership Quantum delivered fantastic growth. Revenues grew 145 per cent over just five years and the number of employees tripled from 100 to more than 300.

We also supported the management’s buy and build strategy with several acquisitions that saw Quantum broaden its service offering to reach more customers.

LDC has been an extremely supportive partner over the past five years in providing the necessary investment to deliver a number of strategic acquisitions and provide transformative change to our facilities and product offering.”
Andrew Scaife, Former Chief Executive Officer
Quantum Pharmaceutical

Successful flotation

In December 2014, Quantum successfully underwent an IPO, which valued the firm at £130m. Following the IPO, LDC retained an 8.2 per cent equity stake, with directors and senior management of Quantum Pharma retaining approximately 8.5 per cent of the issued share capital.

We were keen to remain a part of the team given the promising growth prospects of the new business thanks to its newly licensed Colonis products and the desire of the management team to retain a material stake.

The flotation supported Quantum’s strategy to develop its product base and range across its five core business units in Quantum Pharmaceutical, U L Medicines, Colonis Pharma, Biodose and Quantum Aseptics.

Awards

Deal of the Year

Quantum Pharma – Insider Yorkshire Dealmaker Awards

Deal of the Year

Quantum Pharma – Insider North East Dealmaker Awards