The MBO is backed by YFM Private Equity, with debt from the Co-operative Bank.

YFM’s Chandos Fund will invest £2.05 million in the deal, while its British Smaller Companies VCT is contributing £500,000.

Fishawack’s MD, Tim Mustill, is leading the buy-out. He says: ‘We are now very well placed to deliver on our ambitious growth and development plans.’

The company, which takes its name from a North American river, offers corporate communications, event management and design services to companies in the medical sector. Its clients include Sanofi-Aventis, Roche and GlaxoSmithKline.

Langtons Corporate Finance advised on the deal and helped to secure the funding.

In related news, the British Smaller Companies VCT has appointed a new non-executive director, Helen Sinclair, who will replace Sir Andrew Hugh Smith as chairman subject to shareholder approval. Sinclair was formerly managing director of Matrix Private Equity.

The Chandos Fund typically invests in UK businesses valued between £5 million and £15 million that are seeking up to £5 million of equity. It frequently invests alongside other YFM-managed funds, in particular the British Smaller Companies VCT.