10/30/2019 CORPORATE

Atlantic and PharmaS sign Sale and Purchase Agreement for Dietpharm


Atlantic Grupa continues its strategy of divesting non-core business operations and focusing on key categories and brands, as well as targeted internationalisation of its portfolio.

Atlantic Grupa and PharmaS Group signed a Sale and Purchase Agreement today concerning the company Fidifarm, owner of Croatia's leading food supplements brand – Dietpharm. In addition to Fidifarm's entire portfolio and human resources pool, PharmaS will also acquire Multivita, a regional food supplement brand owned by Atlantic Grupa, whose product Multivita Vitamin C is the leading effervescent vitamin C on the Russian market.

CLOSURE OF THE TRANSACTION BY THE END OF THE YEAR

Fidifarm's sales income in 2018 amounted to HRK 70 million, while sales income for Multivita amounted to about HRK 30 million in the same period. The transaction is expected to be closed by the end of the year.

"Through the sale of Fidifarm, Atlantic Grupa continues its strategy of divesting non-core business operations. This is a successful company offering quality brands whose growth potential becomes even larger with added focus. PharmaS has proven to be a partner who acknowledges the value of the Dietpharm brand and of the people behind it, and recognises the fact that there is room for additional development, which makes us very pleased to have made this transaction a reality. Atlantic Grupa continues focusing on the development of its key categories, keeping the customer at the heart of all business activities", says Lada Tedeschi Fiorio, Atlantic Grupa's Vice President for Business development and Strategy.


"We are extremely pleased that the Dietpharm and Multivita brands will become a part of PharmaS's success story. The value of the Dietpharm brand has been recognised in Croatia and in the region for decades, and is in the focus of our future growth. We are confident that our hard work with the Fidifarm team will strengthen this portfolio even further. This acquisition strengthens the position of PharmaS on the regional market in the Consumer Healthcare segment, which proves the dedication of the company to both of the programmes pursued – over the counter and prescription medicine. PharmaS will continue following the strategy focused on innovative formulas in the development of its products", says Jerko Jakšić, CEO of PharmaS Group.

STRATEGY OF FOCUSING ON  CORE CATEGORIES AND BRANDS


From the beginning of last year, Atlantic Grupa has been implementing a strategy of focusing on its core categories and brands, with the aim of maintaining and increasing their relevance with the consumers. In this context, there is an aim to achieve further business internationalisation, focusing on brands with proven international potential and verified by the consumers. In addition to the main categories of fast-moving goods such as coffee, beverages, savoury spreads, and sweet and savoury snacks, the company is also focusing on the further growth and development of distribution as an important business lever, and on the Farmacia pharmacy chain. This very segment, which communicates directly with our consumers, is an excellent example of a way to build and value the relationship with the people buying the product and receiving services.

ABOUT PHARMAS GROUP


Today, PharmaS Group is the second largest manufacturer of generic medications in the Croatian hospital medications business segment, and last year it strengthened its prescription medicine portfolio through the acquisition of the Croatian branch of Cipla. This year it marks the 10th anniversary of its business operations. When it comes to the Consumer Healthcare segment, 2018 saw the entrance into the Russian market and a sale of over two million units of products developed by PharmaS (ProBalans and ProBalans Baby).
This year, PharmaS signed a global contract with Abbott, a U.S. company, for the export of its portfolio to over 60 countries worldwide, and the new acquisition enables the company to continue focusing on the expansion of its business in the Consumer Health Care segment on regional and international markets, strengthening its team by including top experts and excellent products.