Forty new jobs could be created at a Sussex pharmaceuticals company following a management buy-out.

The new owners of Hove-based Custom Pharmaceuticals said they expected to increase the workforce over the next two years.

The buy out of the medicines and health food supplement manufacturer in Conway Street was effected through Custom Healthcare Ltd, a holding company formed specially for the deal.

Advice came from the Brighton office of accountants Mazars, with senior partner Richard Hopkins at the helm, and Hove solicitors, Bunkers, led by senior partner Ray Garrod.

One-third of the purchase price was raised by the buy-out team and the remainder arranged by Paul Russell, of the Bank of Scotland in Crawley.

The deal adds to a string of successful company acquisitions and sales handled by Mazars'

Brighton corporate finance team, which specialises in management buy-outs.

Custom Pharmaceuticals manufactures and packs about 1.3 billion tablets and capsules under contract.

Its products are sold by a number of well-known High Street outlets, including Boots.

About 70 per cent of the company's production are prescription medicines used by the NHS.

The six-strong buy-out team are all shareholders led by chairman Nigel Richardson.

The new directors plan to increase the workforce from 100 to 140 within two years and a new 43,000sqft warehouse and packaging facility has been bought in Moulsecoomb.

The new site, complementing the factory in Hove, will also house the company's laboratory and administrative offices. Capital investment over the next two years will total £1.5 million.

Mr Richardson said: "Working with Mazars, the Bank of Scotland and Bunkers meant we had expertise and advice close at hand to guide us through a lengthy and complex process.

"Being able to call on local advisers played a large part in the successful completion of the deal."

Mr Hopkins said: "The fact that all the directors have a personal financial stake in Custom Pharmaceuticals demonstrates their commitment to the development of the company and bodes well for its future."

The new management team recently agreed a joint venture with a Chinese company to produce health food supplements.

Mr Richardson said: "It's a five year renewable agreement commencing in the last quarter of this year, our first major deal as new owners of the business and we expect it to help our expansion plans considerably.

"Most of our business is UK-based but we are looking to expand further into overseas markets."

The new Custom Pharmaceuticals board also comprises Neil Baldwin, David Simpkins, Malcolm White, Jerry Russell and Carol Greenway.