The Leeds business success story based on investment backing: Rob Dunnett

Many have done so through various iterations of private equity backing and in my 15 years with Rothschild I supported over 40 of these deals.

A relevant example is Rosemont, Europe’s leading liquid pharmaceuticals business which is based in Leeds.

The firm produces medicines for patients suffering with swallowing difficulties.

In 2006 the business took on private equity backing to spin out of its US parent and established itself as a successful and independent entity.

In 2013 Rothschild was involved in its sale to US trade buyer Perrigo and in 2020 the business was carved out again to regain independence, with the funding and support provided by Inflexion helping the business transition to a standalone entity.

In a very short space of time some great successes have been achieved: the business’ revenues grew an impressive 49 per cent in its first year, despite the behemoth task of simultaneously transitioning its services away from its former parent, including implementing a new ERP system and IT infrastructure.

In its second year with Inflexion Rosemont licensed 33 new products and expanded its offering through the acquisition of Essential Pharma.

Last year the business opened new state-of-the-art R&D labs in Leeds and headcount has grown from 206 at carve out to 277 today.

Rosemont’s success is down to an ambitious leadership team combined with the right investment partner: knowing management wanted to regain independence and expand internationally through M&A, they needed an experienced investor with the scale and ambition to achieve these complex endeavours.

We continue to see great investment opportunities across the North East and Yorkshire, as a growing number of businesses reach a certain size and seek an experienced investment partner to support their growth.

Inflexion has invested significantly in its international portfolio value creation capabilities to support ambitious management teams to fulfil their goals – be that through commercial strategy, enhancing technology / data capabilities and / or helping businesses scale internationally including building / strengthening key functions or executing strategic M&A.

Whilst there is a sophisticated intermediary market to help ambitious management teams find the right investment partner, there remain very few private equity funds with a physical presence in the North to work with local businesses.

Inflexion has the investment breadth and flexibility to partner with businesses at different stages.

Rob Dunnett is investment director for Inflexion