Swede dream as Consort Medical earns £627m valuation in potential sale
Cambridge drug delivery devices company Consort Medical is being sold to Swedish company Recipharm AB in a deal that values the acquired business at £627 million.
The UK share price rocketed more than 43 per cent on the announcement as both boards backed the cash deal.
Consort shareholders will receive 1,010p cash per share, representing a 39.1 per cent premium to the closing price of 726p on the last business day before the announcement.
The proposed acquisition values the entire issued and to be issued ordinary share capital of Consort at approximately £505m on a fully diluted basis and implies an enterprise value of £627m.
The Recipharm Group is a leading contract development and manufacturing organisation in the pharmaceutical space employing almost 7,000 employees.
It offers manufacturing services for pharmaceuticals in various dosage forms, production of clinical trial material and active pharmaceutical ingredient and pharmaceutical product development.
The Stockholm company manufactures several hundred different products to customers ranging from Big Pharma to smaller R & D companies. Recipharm AB has a market cap of around £820m.
Recipharm operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US. Consort is a leading, global, single source pharma services drug and delivery device company at the leading edge of innovation and is committed to investing in patient, clinician and customer driven innovation to create new treatments, new markets and new opportunities.
Its Bespak division in Cambridge and King’s Lynn is a leading player in the manufacture of drug delivery devices for pharmaceutical partner companies, including respiratory, nasal, injectables and ocular products, and the manufacture of devices for the point of care diagnostics market.
The Aesica division is a leading provider of finished dose and API development and manufacturing services to pharmaceutical partners. Consort employs approximately 2,000 people globally of which approximately 1,400 are located in the UK. Consort has UK facilities in King’s Lynn, Cambridge, Nelson, Milton Keynes, Cramlington and Queenborough and its head office in Hemel Hempstead. It also has German facilities in Monheim and Zwickau and a facility in Pianezza, Italy.
Consort CEO Jon Glenn said: “Consort’s strategy has been to focus on expanding its businesses into new markets and geographic territories and on developing our combined drug/device offering, Recipharm’s capabilities and footprint in drug manufacture will enhance both our Bespak and Aesica businesses.
“We believe that customers of both businesses will value the offering and enhanced scale of the combined business.”
The transaction is expected to be completed in Q1 of 2020.