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Ascendis Health acquires leading products from Arctic Healthcare in R151 million deal

Ascendis Health continues on its focussed acquisitive growth path with the announcement that it has acquired 6 leading products from Arctic Healthcare in a deal valued at R151 million.

 
 
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PRLog - Aug. 11, 2014 - NATIONAL - ONLINE, South Africa -- Ascendis CEO, Dr Karsten Wellner comments: “The acquisition of these health products is an exciting addition to the Ascendis Consumer Brands division. Their integration allows us to unlock value by taking advantage of immediate synergies and efficiencies already within our group particularly via production, marketing and distribution channels. The earnings effects calculation shows that the acquisition would have driven an 8% increase in Ascendis’ earnings per share for the 6 month period ended 31 December 2013.”

The acquired products have a long track record over 15 years and enjoy market leading positions in the domestic vitamin and mineral market segments and include established and well known brands such as Chela-Fer®, Menacal7®, Chela-Preg®, Chela-Mag®, Osteoflex, Supa Chewz.

The Arctic strategy has been to develop, launch and distribute an innovative and niche range of nutraceuticals backed by strong research and published clinical trials, resulting in defensible positions through patent protection for many of their molecules. Much of the focus has been aimed at the mineral market with 3 of Arctic's products being market leaders in their particular category thereby presenting Ascendis with an attractive proposition for additional local and export growth opportunities in the coming years.

Their firm market position and stable management has also allowed them to enjoy loyal support from healthcare practitioners, developing a strong and credible reputation in this market. Not only are the large retail pharmacy chains well serviced but an emphasis has also been placed on the fast growing independent pharmacy sector where significant growth has been achieved.  The strength of the Arctic products’ respective market positioning and the quality of their underlying earnings is further demonstrated by their aggregate compounded annual revenue growth being in excess of 15% for the past five years.

These brands are well supported by professionals due to Artic Healthcare’s focus on quality and product differentiation. The sustainable quality and production of the acquired brands going forward will also be supported by Ascendis recent investment into PharmaNatura with its GMP accreditation and focus on the highest standards of innovation, production, marketing and distribution.

Dr Wellner concludes:” The Arctic products are a perfect bolt-on acquisition for Ascendis, as they exemplify our commitment to aggressively expanding our national and international footprint through the acquisition of mature, well managed and resilient products and brands which command market leading positions within their respective categories.  The purchase of the brands without the associated fixed overhead structure will further contribute positively towards our groups sustainable earnings.”

Notes to editors:

About Ascendis Health

Ascendis Health is a health and care company, listed on the JSE in November 2013 that consists of three divisions: Consumer Brands (nutraceuticals, vitamins, sports nutrition and skin care); Phyto-Vet (plant and animal health) and Pharma-Med (prescription drugs and medical devices).

It has a market value of approx R3.5 billion making it the third largest Pharma Company on the Johannesburg bourse. Ascendis Health has a staff complement of close to 1300 employees and is headed by Dr. Karsten Wellner (CEO). Karsten and his executive team have extensive experience in pharmaceutical & medical, consumer health and care products.

For more information, visit www.ascendis.co.za


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Source:Ascendis Health
City/Town:National - Online - National - Online - South Africa
Industry:Finance, Health
Tags:Ascendis Health, Arctic Healthcare, Karsten Wellner
Shortcut:prlog.org/12358312
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