Fagron announces today that it has further strengthened its worldwide market leadership in the fast-growing niche market of pharmaceutical compounding with acquisitions in Brazil, Colombia and Denmark.
These acquisitions will generate an annual turnover of approximately € 12 million in 2012 and an EBITDA margin of 25%. Fagron paid a multiple of 5.5 times EBITDA for the acquisitions. The acquisitions are consolidated as from 1 November 2012. In Australia, Fagron has entered into a partnership with NxGen Pharmaceuticals, resulting in Fagron Australia being fully operational since 1 November 2012. Fagron China commenced operations as of 1 October 2012. Fagron China will optimise purchasing conditions of pharmaceutical raw materials in China and facilitate the audits of Chinese suppliers.
Ger van Jeveren, founder and CEO of Fagron: These acquisitions are a perfect match for Fagron’s strategy to further extend its worldwide market leadership in the fast-growing niche market of pharmaceutical compounding. The acquisitions in Brazil, Colombia and Denmark, the partnership in Australia and the opening of Fagron China enable us to gain clear benefits, not only in terms of purchase, analysis and production, but also in the fields of innovation and product range. With these acquisitions, Fagron currently has 1,500 employees, including 150 pharmacists, and is active in 28 countries in Europe, North America, South America, Asia and the Pacific. Fagron will further extend its worldwide market leadership through an active buy-and-build strategy and robust organic growth. Fagron has a well-filled pipeline of acquisition candidates in both Europe, and North and South America.
Colombia – Acquisition of five compounding pharmacies
In Colombia, Fagron finalised the acquisition of Orbus Pharma (www.orbuspharma.com). Fagron also acquired four compounding pharmacies from Quifarma. The five compounding pharmacies are located in Bogotá, Medellín and Cali and are specialised in the preparation of tailor-made medication. These acquisitions are a decisive first step in the fast-growing market of pharmaceutical compounding and at the same time form a solid foundation for expansion within this niche market in Colombia. Immediately after finalising these acquisitions, Fagron started integrating the compounding pharmacies. From 1 January 2013, the five compounding pharmacies in Colombia will operate under the name.
Fagron Colombia. Brazil – Acquisition of Florien
After the acquisitions of DEG (currently Fagron Brazil) in 2010 and Pharma Nostra in 2011, Fagron further strengthened its market leadership in the Brazilian market for pharmaceutical compounding with the acquisition of Florien (www.floreseervasind.com.br). Set up in 1994 and based in Piracicaba (close to Campinas), Florien supplies pharmaceutical extracts and tinctures for pharmaceutical compounding to compounding pharmacies in Brazil. The product range of Florien is fully complimentary to the existing activities of Fagron in Brazil.
Denmark – Acquisition of ApodanNordic PharmaPackaging
In Denmark, Fagron finalised the acquisition of Copenhagen-based ApodanNordic PharmaPackaging A/S (www.pharmaemballager.dk). Established in 1962, ApodanNordic PharmaPackaging specialises in the development and sale of packaging materials for pharmaceutical compounding to pharmacies and hospitals. Although a large part of the turnover is achieved in Scandinavia, ApodanNordic PharmaPackaging’s products are being sold beyond Scandinavia to an increasing extent. ApodanNordic PharmaPackaging’s products are an important addition to the Fagron Group’s range of pharmaceutical packaging.
Australia – Partnership with NxGen Pharmaceuticals
Fagron has entered into a partnership in Australia with NxGen Pharmaceuticals, resulting in Fagron Australia being fully operational since 1 November 2012. Fagron Australia will be introducing Fagron’s innovative products and concepts to the Australian market. Through Fagron Academy, Australian prescribers and pharmacists will be informed about the benefits and importance of pharmaceutical compounding for their patients. In addition to this, pharmacists will be offered courses to further improve their skills in compounding of tailor-made medication.