HSBC Private Equity has led and arranged the management buyout of European pharmaceutical business Risdon Pharma from parent company Crown Cork & Seal of the USA, financed by approximately €97 million.

The transaction was financed through a combination of institutional equity provided by HSBC Private Equity as well as mezzanine and senior debt from Crédit Industriel et Commercial. The financing includes €12 million to sustain in 2002 and 2003 the investment programme that supported previous rapid growth, and also a revolving facility of €6 million. 

Risdon Pharma is a leading European manufacturer of primary plastic packaging for the pharmaceutical industry. The company designs and produces a wide range of containers and dispensers, including eyedroppers for the ophthalmic industry and nasal sprays for ENT (Ears-Nose-Throat) drugs.

Primary packaging comes into direct contact with the drugs it dispenses and so requires stringent quality specifications. Often packaging supplies are specified in the Food & Drugs Authorities approval files for the underlying drug. Zero defect high volume production of these products is highly demanding, and Risdon is one of the few businesses that can meet the exacting standards required by their blue chip pharmaceutical company clients. 

Within the last three years, Risdon Pharma has developed a promising new capability in manufacturing complex, multi-component, plastic drug delivery systems. These include an anti-asthma dry powder multi-dose dispenser and a safety device for syringes to prevent accidental needle injury. These high specification devices are expected to generate part of the doubling of sales planned by the company by 2005.

Risdon Pharma is expected to generate sales of €52 million for the year to December 2002. The company employs some 300 staff and operates two manufacturing plants, in France (Offranville) and Germany (Neuenburg).

Amaury de Menthière, Chief Executive Officer of Risdon Pharma, said: "This transaction provides Risdon Pharma with its independence and gives us the support of a powerful international financial group. As an autonomous business we will focus entirely on the pharmaceutical industry and will accelerate our strategy of investing in new technologies and state of the art production."