Mobeus treats shareholders to another exit
Mobeus has fully realised its investment in Focus Pharmaceuticals Limited (“Focus”), a speciality pharmaceuticals business, through a trade sale to Cinven-backed Amdipharm Mercury group (“AMCo”).
Focus, based in Burton upon Trent, is a leading supplier of niche generic pharmaceuticals in the UK. The company develops and licenses its own generics, in addition to selling third party generic and branded products.
Mobeus supported the management buyout of Focus in 2007. At the time, revenues were c. £12m and the business was modestly profitable. Through the investment period, the business has demonstrated strong growth - turnover has grown three-fold to just under £40m and the business is now generating profits in excess of £6m.
Focus has been sold for upfront consideration of £50m, with deferred consideration and an earn-out of up to £20m in addition to this. Mobeus originally invested £3.2m to support the MBO. The investment has now returned c. £12m in cash to the Mobeus advised Venture Capital Trusts (“Mobeus VCTs”) with a further potential £2.6m in deferred consideration and earn-out yet to be realised. The cash return to date equates to a 3.7x multiple of Mobeus’s original investment, a cash IRR of 25% over a seven year period.
Ashley Broomberg, Partner at Mobeus, commented:
"It has been a privilege to be part of the Focus success story which is all down to the four members of this highly entrepreneurial and capable management team. The team has single-mindedly pursued its vision for value creation, delivering consistent and controlled growth in a competitive and regulated market."