German Celesio AG is interested in all Protek Group, not only in its distributor’s division, and stands ready to pay $1.2 billion to get control over Rigla, which is the second network of pharmacies in Russia.
Photo: Sergey Bykhovez
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Celisio to Grab Protek Along With Rigla
German Celesio AG is interested in all Protek Group, not only in its distributor’s division, and stands ready to pay $1.2 billion, i.e. $200 million more than they have planned, to get control over Rigla, which is the second network of pharmacies in Russia. In this business, the analysts speculate, the efficiency of retail is two times above the wholesale – 30 percent vs. 15 percent.
German Celesio expressed the intention to buy out the majority in Protek’s distributor in mid-October. Then, the analysts estimated the deal budget at $1 billion. But during negotiations, it emerged that Celesio was interested in all key companies of the group.
Celesio found promising all directions of Protek and the final terms of the deal will be agreed on by mid-December, Protek said in the press release yesterday. According to Celesio’s briefer, they plan to close the deal in December, but the matter at stake is the first stage, which provides for the acquisition of the stake that the company initially planned to buy out from the holders.
Protek Group unites three companies – TsV Protek, which is the biggest distributor on Russia’s pharmaceutical market; Rigla that is Russia’s second network of pharmacies both in size and turnover; and Farmfirma Sotex production facilities. DSM Group estimated 2006 turnover of TsV Protek at $2.17 billion (the market share of 23 percent), Rigla that owned 626 pharmacies at close of the first half of this year had $247 million and Farmfirma Sotex posted the sales of $56.7 million.
www.kommersant.com
All the Article in Russian as of Oct. 26, 2007
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