Recipharm acquires Ashton Pharmaceuticals

Manchester manufacturer Ashton Pharmaceuticals has been bought out of administration in a move that will also save 280 local jobs.

The company, which is based at Ashton-under-Lyne and serves markets in the UK, Europe and Asia, specialises in the contract manufacture of a number of critical drugs, the supply of which has been secured by the transaction.

Swedish-owned Recipharm, one of Europe's leading contract development and manufacturing organisations, has bought the company. The new company will trade as Recipharm Ashton.

Thomas Eldered, president of Recipharm, said: "The acquisition is good news for the north west and we are delighted that the future of the site is secured. Ashton Pharmaceuticals brings additional capacity and capabilities to Recipharm, which complement other facilities in Sweden and France. It also provides us with a much enlarged customer base and technologies in a strategically important market."

Richard Parkinson, partner at turner parkinson LLP, and solicitor Nicky Davies, acted for Recipharm. Richard said: "Ashton Pharmaceuticals is one of the most established pharmaceutical companies in the UK and an important employer in the Manchester area. We were delighted to be instructed by the new Swedish parent and play a part in the saving of such a significant number of jobs.

"It is great to see the north west attracting overseas investment and it highlights the significance of the region in the European pharmaceutical industry."

Roy Bailey and David Duggins from Ernst & Young were appointed as joint administrators to Ashton Pharmaceuticals on 28 June 2007.