Mobeus has realised its investment in Focus Pharmaceuticals in a sale to Cinven-backed AMCo.
Focus, based in the Midlands, is a leading supplier of niche generic pharmaceuticals in the UK.
Original Deal
Mobeus invested £3.2m to support the MBO of Focus from the founder shareholder. The funding was provided as a combined debt and equity package.
Impact
At the time of the original MBO, revenues were c. £12m and the business was modestly profitable. Through the investment period, Focus demonstrated strong growth. Turnover grew three-fold to c.£40m and profits to in excess of £6m.
Sale
In September 2014, Focus was sold to Cinven-backed Amdipharm Mercury Group for upfront consideration of £50m with deferred consideration and an earn-out £20m, most of which was subsequently paid.
Returns
The investment returned £14.3m to Mobeus, 4.5x money and a 28% IRR over a seven year period.