Fagron secures number 2 position in largest compounding market in the world
Waregem (Belgium) / Rotterdam (The Netherlands)[1], 20 December 2010 – Arseus announces today that it has signed a definitive agreement for the acquisition of Brazilian DEG, a leading supplier of raw materials for pharmaceutical compounding to pharmacies in Brazil. The S√£o Paulo-based DEG is number 2 on the Brazilian market, with expected turnover of approximately € 25 million in 2010. The EBITDA margin of DEG is approximately 16%. DEG will be consolidated from 1 November and will immediately contribute to Arseus’ earnings per share.
Ger van Jeveren, CEO of Arseus: “The acquisition of DEG is an important milestone in Fagron’s history. Until the beginning of 2010, Fagron was only active in Europe. With the acquisition in mid-May of the already fully integrated American Gallipot and the acquisition of Brazilian DEG, within one year Fagron has become the worldwide market leader. Potential acquisitions in Europe, the United States, Canada and Latin America are currently being looked into to further strengthen this position.
Because of the excellent track record and quality of the organisation of both DEG and Fagron, we expect a rapid and smooth integration, with a particular focus on the substantial synergy advantages and economies of scale. A project to introduce Fagron’s broader product range on the Brazilian market will be started up immediately.
We are very pleased with the confidence that the former owners of DEG, Vanderlei Esteves, Walter Giarreta and Geraldo Dornelas, and the senior management have expressed with regard to Fagron’s strategy and their commitment to further contribute to the development of DEG.
As of 1 January 2011, Rafael Padilla, the successful General Manager of Fagron Ibérica, will be appointed General Manager of Fagron’s Brazilian activities. As of the same date, Juan Manuel Martin, the current Business Development Manager of Fagron Ibérica, will succeed Rafael as General Manager.”
[1] This press release was sent out by Arseus NV and Arseus BV.
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