Disposal of Integrated Pharmaceutical Services (IPS) Limited
Elysian Capital I LP disposed of its interests in IPS, a supplier of unlicensed medicines or specials to the pharmacy market, on 19th November 2014 to a secondary buy out led by Ashok Patel, the original founder of the business.
When Elysian invested in 2010, Ashok sought more than a financial investor and was looking for a partner who could bring some commercial expertise and help the business transition to the next level. In the following four years, Chai Patel and James Cunningham of Elysian worked closely with the company which has been transformed through:
- Creation of a national salesforce
- The broadening of the customer base from independents within the M25 to a national footprint with major multiple accounts
- Implementation of a single ERP IT system across the company and the development of a market leading online solution
- Construction of a new laboratory which increased capacity five times
- New branding to ensure a consistent company image
- Introduction of a new company structure with experienced managers leading each function
- Expansion into imported Specials and the development of a Special Obtains service
The Specials market has undergone significant change over the last four years with the introduction of a pricing tariff by the Department of Health and pressure to reduce prescriptions by the PCTs and their successors the CCGs This has reduced the value of the market by c30% but has also increased transparency in the market which, long term, benefits quality suppliers such as IPS.
Over the life of Elysian’s investment, volumes increased significantly and employee numbers grew from 19 to 54.
Ashok Patel commented: “Elysian has made a significant contribution in making IPS as it is today. IPS has developed from a small family owned company to a larger more robust company and we now have a strong scalable platform to develop it further.”
Ken Terry, CEO of Elysian, said: “The progress made at IPS, against the backdrop of a changing market due to the introduction of a pricing tariff for specials by the Department of Health, demonstrates the value that Elysian’s operating model can bring to entrepreneurs who are seeking a partner to help them take their company to the next level.”
The Fund made a 2.6x return on its original investment.
For further information, please contact
Ken Terry, CEO, Elysian Capital
0207 925 8051; Ken@elysiancapital.com