Management at Tredegar, Wales-based Penn Pharmaceutical Services has completed a £67million buyout of the business.

Led by chief executive, Peter George, management has bought the business from exiting chairman Craig Rennie and institutional shareholders Gresham Trust. Under the terms of the deal, private equity firm LDC has invested £33m for a significant majority stake in the business.

Following the deal, management and LDC will be focused on a growth strategy that will increase manufacturing capacity, expand Penn's international profile and maximise cross-selling opportunities within the business.

Penn employs more than 200 people and operates from a 323,000ft² base.

The £16million turnover company has increased the size of its order book by 30 per cent over the last 12 months and sales are set to reach nearly £25million over the next four years.

Steve Carle, director at LDC, said: The pharmaceutical outsourcing market for contract and research services is set to grow by 14 per cent a year over the next three years.

Penn is ideally placed to capitalise on this as it's one of the few businesses capable of providing the high-quality, specialised services demanded by the sector,. he added.