Member Article

BGF exits Alnwick-headquartered Arcinova

BGF, the UK’s most active growth capital investor, has announced the exit of its investment in Arcinova, the U.K.-based multiservice contract development and manufacturing organization (CDMO). Following a period of growth and expansion, the business has been acquired by Quotient Sciences, the drug development and manufacturing accelerator, backed by the global private equity firm Permira.

Marking its first investment in life sciences, BGF invested £5m into Arcinova in 2018. The funding was used to accelerate growth by increasing production capacity and recruiting more staff. BGF’s team provided strategic support to Arcinova’s growth strategy, including supporting the strengthening of its Board and management team, and recruiting chief executive Roger Kilburn.

Arcinova’s facility in Alnwick is now one of the most technically advanced of its kind in the UK, whilst co-founder Professor Shott has been heavily involved in promoting clean and efficient chemistry and biotechnology processes to minimise the environmental impact of drug development.

BGF was the most active investor in life sciences in 2020, and has now backed more than 13 companies in the sector across the UK. In the North of England, BGF has backed more than 80 business across a wide range of sectors, deploying £650m of capital, and delivered close to 20 exits.

Richard Taylor, Head of Yorkshire and North East at BGF said: “It is testament to the strength of Arcinova’s deep science specialism combined its with scale that the company has delivered such a successful exit. We are delighted that our funding was able to accelerate the company’s expansion, leading to the acquisition by Quotient Sciences. We look forward to watching the continued growth of Arcinova.”

BGF’s Mark Bryant, who sat on the Board of Arcinova, said: “Arcinova has spearhead the use of new intensive manufacturing technology processes to support the rapid development of pioneering drugs for the treatment of life-threating illnesses. We are privileged to have played a role in the growth of the company, which will no doubt continue to deliver world-leading innovations in life sciences.”

Prof. Ian Shott CBE, 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. BGF has been an excellent partner to the business over the past two years, and we are now delighted to move on to the next stage with Quotient.”

BGF received legal counsel from Weightmans. KPMG served as corporate finance adviser for Arcinova, and Womble Bond Dickinson provided legal counsel to the majority shareholders and co-founders.

Quotient Sciences was advised by BCG for commercial diligence and RBC provided advisory services. PwC served as financial and tax advisor, and Latham provided legal counsel.

This was posted in Bdaily's Members' News section by Emma McCallum .