German Phoenix Group, which owns the Help Net drug store network in Romania, has signed the takeover of 52 pharmacies from local drug distribution group Farmaceutica Remedia Deva.

The value of the transaction is up to EUR 8.5 million, Farmaceutica Remedia announced on the Bucharest Stock Exchange.

The transaction is subject to approval by the Competition Council.

With this move, Farmaceutica Remedia aims to increase its profitability and secure resources for consolidation and development of profitable business lines.

The company’s shares, which are trading on the Bucharest Stock Exchange under the RMAH ticker, went up 14.5% on Wednesday, February 12, after the transaction was announced.

The company’s market value before the transaction was EUR 8.3 mln, less than the price received for the 52 pharmacies. The company had a turnover of RON 99 million (EUR 20.7 mln) and a net profit of RON 2.1 mln (EUR 0.45 mln) in 2018.

Phoenix Group entered the Romanian market in 2018 through the acquisition of the Help Net drug store chain and Farmexim drug distributor.

The group then continued to consolidate its presence on the local market through the acquisition of smaller players. In 2019, the group bought three regional pharmaceutical networks adding about 65 units to the Help Net chain.

“The most important thing of all in business development is to have a vision, a dream. I know Help Net dreams big and I’m positive our 52 pharmacies will contribute to Help Net’s vision of dedicating themselves to the patient’s needs and giving our employees an excellent work environment,” said Valentin-Norbert Tarus, CEO and main shareholder of Farmaceutica Remedia.

(Photo: Pixabay)

editor@romania-insider.com