Arseus announced Monday that it has signed an agreement for the acquisition of the Brazilian Pharma Nostra, a leading supplier of raw materials for pharmaceutical compounding to pharmacies in Brazil.

Pharma Nostra is the market leader in Brazil with a turnover of approximately € 45 million in 2010.

Pharma Nostra’s EBITDA margin is approximately 15%. The acquisition sum for Pharma Nostra is approximately € 51 million. On completion of the transaction approximately 60% of the acquisition sum needs to be paid.

This payment consists of a cash payment of € 28 million and € 4 million from treasury shares. The number of Arseus’ treasury shares will therefore decrease to below the notification threshold of 3%. Payment of the remaining € 19 million will be spread over a period of three to five years.

Ger van Jeveren, CEO of Arseus reiterated his delighted that in addition to the Brazilian company DEG, Arseus can now welcome Pharma Nostra to the Fagron Group. Both acquisitions play an essential role in Fagron’s strategy to further expand its global market leadership in the rapidly growing niche market of pharmaceutical compounding, said Jeveren.

The acquisition of Pharma Nostra enables Arseus gain clear advantages, not only with regard to purchasing, analysis and production, but also with respect to product assortment and sales and marketing, said Jeveren.

Due to the excellent track record and the quality of the organization of both Pharma Nostra and Fagron, Arseus expects an equally rapid and smooth integration as with DEG.

Antonio Bolognani, CEO of Pharma Nostra said the company is looking forward to combining forces with the Fagron Group. Fagron’s network in Europe, the United States, Brazil offers great potential to roll out successful products internationally, said Bolognani.

Nostra’s clients will benefit from an excellent range of products and services and its employees will enjoy opportunities for further development in an international environment. The company looks forward to making a real contribution to the further growth of both Pharma Nostra and the Fagron Group after the acquisition too, said Bolognani.

Pharma Nostra was founded in 2000. In 2010, Pharma Nostra achieved a turnover of € 45 million with 300 employees. Around 75% of the turnover is generated by the sale of pharmaceutical raw materials to compounding pharmacies. Industrial sales contribute around 25% to the turnover. Pharma Nostra has branches in Rio de Janeiro, Anápolis and Campinas (near São Paulo).

12th July 2011