PE Deals

GHO Capital, Partners Group invest in Sterling Pharma Solutions

Sterling Pharma Solutions is a global contract development and manufacturing organisation.

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  • GHO’s investment is supported by a consortium of investors, led by funds managed by AlpInvest Partners and Pantheon
  • Partners Group has acquired a significant minority stake in Sterling
  • GHO will remain Sterling’s majority shareholder

GHO Capital Partners and Partners Group have made an investment in Sterling Pharma Solutions, a global contract development and manufacturing organisation (CDMO).

No financial details of the transaction were disclosed.

Sterling is based in Northumberland, England.

This new investment from GHO is supported by a consortium of investors, led by funds managed by AlpInvest Partners, a subsidiary of global investment firm Carlyle, and Pantheon.

Partners Group has acquired a significant minority stake, and GHO will remain Sterling’s majority shareholder.

“We believe that strategic partners to innovative pharmaceutical companies will benefit from further outsourcing as well as production reshoring trends,” said Pascal Noth, head private equity health & life Europe, Partners. “Sterling’s focus on complex APIs means it is well positioned to capitalise on rising demand for next-generation small molecule medicines.”

Sterling’s current management team will continue to lead the company.

GHO first invested in Sterling in 2019.

Sterling, since GHO’s investment, has tripled in revenues and quadrupled its earnings following M&A focused on capacity expansion, capability development, and geographical footprint, according to a release.

The new investment will support Sterling as it accelerates its growth plans via the expansion of production capacity across the UK, Europe, and the US, the release added.

Partners Group is a global private markets firm. The firm has over $135 billion (€125.7 billion) in assets under management as of 31 December 2022 and is based in Baar, Switzerland.

GHO is a healthcare investment advisor based in London.

GHO was advised by Jefferies International as secondaries advisor, and Slaughter and May and Kirkland & Ellis International as legal advisors.

Partners was advised by Ropes & Gray International as legal advisor, Ernst & Young as commercial advisor, and PricewaterhouseCoopers as financial, tax.