A Northumberland pharmaceutical company has been acquired, five years after its formation took over a well-established drug production facility.
Alnwick-based Arcinova has been taken over by Nottingham firm Quotient Sciences, a drug development and manufacturing accelerator. The size of the deal has not been disclosed.
The company - which has around 160 employees - provides drug substance, drug product and bioanalysis services to more than 200 pharma and biotech customers worldwide.
It was set up by Ian Shott and Paul Ryan in 2016 to take over the former Covance and Sanofi site in Alnwick, which had been set to close. The firm was backed two years later by BGF, which has exited the firm in the current deal.
Prof Ian Shott, co-founder and executive chairman of Arcinova, said: “Since inception, we set out to build a unique organization that accelerates the development of new medicines for patients in need. We are delighted to move on to the next stage with Quotient as the perfect partner for Arcinova.
“Deep science, agility, flexibility and the drive for customer service excellence are the cornerstones of both businesses. I look forward to working with the Quotient team and Permira to deliver even greater value for our customers.”
Quotient said the deal would expand its service portfolio and would enable the drug substance, drug product and clinical testing capabilities in one organization.
Mark Egerton, CEO of Quotient Sciences, said: “I’d like to congratulate the Arcinova team on building an exciting business, and I am thrilled to be joining forces. Both businesses are similar in culture and aspire to help customers accelerate molecules from candidate selection through development and on to commercial launch.
Most Read
“I’d also like to take this moment to thank our private equity partner, Permira, for supporting our ambitious growth plans.”
RBC Capital Markets acted as exclusive financial advisor to Quotient Sciences. PwC provided financial and tax due diligence services and Latham & Watkins provided legal counsel. BGF received legal counsel from Weightmans. KPMG served as corporate finance adviser for Arcinova, and Womble Bond Dickinson provided legal counsel.
Arcinova has been a longstanding client of Womble Bond Dickinson, with the firm advising on the original acquisition of the business from Covance in 2016 and its subsequent investment from BGF.
Womble Bond Dickinson’s Newcastle corporate team also acted for Arcinova’s founders in relation to other business ventures, including the sales of Kiln Flame Systems Limited and BPE Design and Support Limited.
Ben Butler, partner at Womble Bond Dickinson, said: “We are delighted to have advised the team at Arcinova on this exciting new chapter for the business. We have always really enjoyed working with Ian and Paul and the fantastic businesses they have created. It has been a privilege to support them on their multiple corporate journeys.”
“There is an incredible amount of deal activity going on currently, with a huge appetite from private equity funders, in particular, for growing, resilient businesses. It is pleasing to see so much of this investment flowing into organisations based in the North East, which is testament to the incredible companies we have in the region.”