Quantum Specials, a supplier of bespoke medicines to the pharmaceutical industry, has been bought by its management in a deal worth £32.5 million.

The management team was led by MD Ian Edge who invested in the company along with private equity house LDC and Yorkshire Bank Corporate and Structure Finance. LDC invested £14 million though a combination of loans and shares while Yorkshire Bank provided a £18.5million package of senior debt and working capital.

Edge said: “After nearly five years of rapid growth, this deal comes at a crucial time in our development and will bring on board the expertise and f inancial backing we need to take the business forward.”

The buyout will provide an exit for Phoenix Medical Supplies and a number of the founding shareholders.

Based in Burnopfield, County Durham, the business produces ‘specials’ – bespoke drug formulations that are not readily available from drug manufacturers. It supplies wholesalers, pharmacies, chemists, dispensing doctors, hospitals and veterinary surgeries across the UK.

Since it was established in 2004, Quantum Specials has grown rapidly and it is forecast to generate sales of £22 million this year.