STADA strengthens distribution in Italy by acquiring majority stake in Pharmajani
STADA Arzneimittel AG is set to strengthen its sales and distribution capability in Italy. Effective January 8, 2003, STADA is acquiring a majority interest in Pharmajani SpA, which is based in Arese, Lombardy. This company, established in 1983, specializes successfully in the distribution of pharmacy products, generating sales of approx. 9.5 million EUR in fiscal 2002. STADA is to acquire 60% of the company's shares, with 40% remaining with the seller and the company's management.
The aim of shareholders is to further expand the company's operations and to significantly strengthen the distribution capabilities of STADA's Italian subsidiaries EG SpA and Crinos SpA. To this end, the acquired company's headquarters will be moved to Milan, where EG SpA is based; at the same time, the company will change its name to New Pharmajani SpA (NPA).
NPA sells various licensed products in pharmacies, currently employing a salesforce of 45 freelancers. STADA's new subsidiary will expand its present regional focus on northwestern Italy into a nationwide presence and, in addition to STADA's products, will continue to sell other companies' drugs. STADA will therefore consolidate the aquired sales of NPA as part of its Commercial Business segment. This acquisition provides STADA with more direct access to Italian pharmacies and will enable it to step up the sale and marketing of its own product ranges through this distribution channel by using a Group-controlled company.
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