Three years after backing the rescue of Excelsyn, the investment is sold to Albany Molecular Research, Inc. (“AMRI”) for £12million, delivering a market-leading 4x return.
Excelsyn is a pharmaceutical services company that provides a broad range of chemistry solutions to the pharmaceutical industry. The company works with biotech, pharmaceutical and fine chemical companies worldwide to help customers progress compounds through pre-clinical, clinical and commercial phases by providing small molecule synthesis, scale-up solutions and support services.
Rescuing Excelsyn
Endless first became involved with Excelsyn in 2007 when the company had lost the support of its bank and was unable to pay its wages. The business had expanded outside of its core pharmaceutical skill base into cash absorbent and unprofitable engineering and consulting divisions which were dragging the business down.
Endless, through its existing relationship with the bank, was able to bring stability to an escalating situation and provide new working capital funds and advice to help turn the business around.
The Work Begins
Following its investment, Endless worked closely with Ian Shott (Excelsyn’s CEO) and the management team, refocusing the business onto its profitable and high growth chemicals division, closing the company’s engineering and consultancy arms, rationalising the existing work force, securing new lending and assisting in driving the growth strategy of the business.
The management team of Ian Shott, Paul Ryan and David Rowles seized the turnaround and restructuring opportunity with gusto. By focusing on speed of delivery and quality of service, the business was able to increase its average project size from approximately £10,000 at acquisition to over £100,000 in 2009 and is now seen as a key strategic partner to many of the world’s largest pharmaceutical companies.
In 2007 the business recorded an EDITDA loss of £1.8 million from £12 million of sales. By 2009 this had been turned around to an EBITDA profit of £2.2 million from a similar level, but very different mix, of sales.
Endless Exit
In late 2009 CEO Ian Shott sourced and negotiated a deal with AMRI, a US market leading provider of scientific services, products and technologies focused on the pharmaceutical industry. AMRI was attracted to Excelsyn due to its ability to expand AMRI’s portfolio of development and large scale manufacturing facilities as well as its customer portfolio. The proximity of Excelsyn’s business to Europe was also seen by AMRI as a key strategic move.
Excelsyn’s CEO Ian Shott commented on the sale: “Endless showed outstanding initiative in backing Excelsyn in 2007 when others would not, and their courage and foresight have been well rewarded.”
Endless wishes to thank the Excelsyn management team and staff, KBC Asset Based Lending, HBOS (now Lloyds Banking Group) and all of our advisors for this tremendous turnaround.