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CBPE nets 22x on IDIS

AIM-listed pharma company Clinigen Group will pay £225m for the unlicensed medicines importer and supplier

UK mid-market firm CBPE Capital has sold IDIS to AIM-listed specialty pharmaceuticals and pharmaceuticals services business Clinigen in a deal valuing the business at £225 million (€315 million; $341 million), according to a statement.

The sale has generated a 22x return for CBPE on its £9.4 million (€13.5 million; $14.2 million) investment, the firm said.

IDIS provides regulatory and ethically compliant access to unlicensed medicines for healthcare professionals and their patients. It provides medication in almost 100 countries to more than 100,000 patients each year, and counts 17 of the top 20 global pharma companies as its customers, alongside biotech companies, hospitals and retail pharmacies.

CBPE acquired IDIS in 2005 in a deal valuing the company at £22 million, using capital from its £360 million (€503 million; $540 million) CBPE Capital Fund VII, a 2004 vintage.

Under CBPE’s ownership IDIS’ EBITDA has grown from £3.6 million to £12.5 million in the year to 30 November 2014, and over the last 12 months EBITDA had grown to £15.6 million to 28 February 2015, CBPE said. Employee numbers have increased from 69 to 189.

Growth has particularly accelerated in the last two years, CBPE said. In the year to 30 November 2014 IDIS started 22 new managed access programmes and a further eight contracts were signed in the four months to 31 March 2015, bringing the total number of programmes that IDIS is operating to 66 as of 31 March 2015.

Following the sale of IDIS Fund VII is fully divested.

Earlier this week CBPE agreed to offload its majority stake in UK holiday park owner and operator Away Resorts to LDC, the buyout arm of UK-based Lloyds Bank. LDC said it will be investing £18.5 million (€25.8 million; $27.8 million) to “support the team in delivering their organic growth plan, capitalising on the buoyant market for ‘staycations’ in the UK and providing capital to support further high quality acquisitions to complement the current Away Resorts portfolio”, PEI reported earlier.

CBPE is currently investing its eighth fund, the first since it was spun out from UK investment bank Close Brothers in December 2009. The fund closed on £405 million (€462 million; $663 million) in January 2010 after more than a year in market.

The fund recently picked up a majority stake in cross-platform retailer sofa.com, reportedly paying between £40 million (€53.8 million; $61 million) and £50 million (€67 million; $76 million) for the business.