The bank-backed £2.5 billion Business Growth Fund (BGF) has continued its summer dealmaking by adding a pharmaceuticals company to its portfolio.

Abbey Pharma, which manufactures, distributes and sells prescription products, has secured £2 million of investment capital from the firm.

Part of the finance deal, which has been bolstered by further funding from NatWest, has been part used to acquire fellow speciality pharmaceutical and venture capital-backed business Peckforton Pharmaceuticals for an undisclosed amount.

According to a statement, the transaction means the combined business will have revenues of £8 million, with the purchased company adding ‘new and complementary’ products.

Kevin James, CEO of Abbey Pharma, says that the business has been communicating with BGF for some time. ‘We are very confident that they are the right fit for us and they have a good track record of helping companies to expand through acquisition,’ he adds.

‘BGF’s investment has already enabled us to complete the acquisition of Peckforton Pharmaceuticals and there are a number of other targets in our pipeline.’

More on recent BGF deals:

• Barburrito and Xercise4Less return to equity backer
• Government-focused Skyscape Cloud Services gets funds

Other companies to have secured backing from the BGF to finance a buy-and-build strategy include drainage contractor Flowline, marketing and communications agency Palmer Hargreaves and pub group Wear Inns.

Abbey Pharma supplies both the NHS and pharmacy wholesale markets with products covering ophthalmology, oncology, pain, gastrointestinal and dermatology.

James Austin, investment director at BGF, says, ‘In Abbey Pharma we are backing a first class team in a rapidly expanding business with a strong platform for acquisitive growth.

‘Their progress to date has been impressive, both in delivering on the existing portfolio to drive revenues and also in sourcing and completing acquisitions to expand their reach.’