CEPD N.V., fully owned subsidiary of the Pelion Healthcare Group, acquired Polbita sp. z o.o., Natura drugstore chain owner, from Alior Bank S.A. and Erste Group Bank AG. The transaction closing is subject to clearance by the Chairman of the Office of Competition and Consumer Protection (UOKiK).
The Natura drugstore chain consists of 258 stores (including 240 own locations and 18 agencies) and is one of the largest chain operating on the Polish cosmetics market. The company has almost 1500 employees. Consolidate results of the company for 2013 exceeded PLN 420 mln. Currently, the company generates positive EBITDA results. According to market research results by PMR, Natura drugstores are the third preferred place to purchase cosmetics.[1]
The transaction is a part of CEPD N.V. strategy of diversification of its activities and strengthen relations with clients in Health&Beauty sector. The acquisition is aimed to strengthen the position of CEPD N.V. in Poland and ensure further revenue growth.
– The decision to acquire a drugstore chain is a result of analyzing the Polish cosmetics market and its dynamic growth, averaging at almost 5% p.a. over the last 7 years – says Ron Drori, CEPD N.V. CEO. He also stresses that situation of the Polish pharmaceutical market supports diversification of activities in order to improve business efficiency and at the same time meet clients changing needs.
According to PMR, a market research provider, in 2013 the value of the Polish cosmetics market was 20bn PLN. According to the forecasts, this will go up to 23bn PLN until 2016.[2]
The CEPD N.V. strategy includes further development of the Natura drugstore chain. – We have experience in managing large retail chains in Poland as well as abroad and we are convinced that we can leverage this know how and expand the Natura chain – Drori states. – As a first step, we intend to extend the range of products and services available to the clients as well as reinforce relationships with suppliers. In the coming months, we will also develop a chain development strategy for the coming years. On top of that, we intend to take advantage of synergies arising from other areas CEPD N.V. operates in, including the product portfolio, online business or own real estate. – adds the CEPD N.V. CEO.
The main financial elements of the transaction are CEPD N.V obligation for additional financing for Polbita Sp. z o.o. at the amount of 10 mln PLN as well as ensuring long-term debt financing by Alior Bank S.A. and Erste Froup Bank AG at the total amount up to 150 mln PLN for development and refinancing of present debts of Polbita Sp. z o.o. which will be secured by, inter alia, CEPD N.V. and Pelion S.A.’s guarantee at the total amount of 62,5 mln PLN.
CEPD N.V. (Corporation of European Pharmaceutical Distributors N.V.) is one of the leading European companies active in the pharmaceutical retail industry. Through its subsidiaries, the group manages a chain of almost 1300 pharmacies in Poland, Lithuania and Great Britain.
In Poland, CEPD N.V. manages the Dbam o Zdrowie pharmacy chain through the DOZ S.A. local subsidiary. The chain has over 900 outlets, including 597 pharmacies owned by the group and 316 operating under franchise agreements.
In Lithuania, CEPD N.V. operates through UAB NFG, a leader of the local pharmaceutical market. UAB NFG owns 314 pharmacies operating under two brands: Gintarine Vaistine and Norfos Vaistine. The company also has 9 franchisees, operating under the Gintarine Vaistine brand, and it cooperates with a chain of 155 BVG partner pharmacies. Through Limedika, UAB NFG is also active in the pharmaceutical wholesale sector, supplying as many as 1500 Lithuanian pharmacies, hospitals, optical shops and stores. On top of that, UAB NFG operates the biggest Lithuanian online pharmacy at www.vaistine.lt.
CEPD NV owns a pharmacy in London, too, catering mainly to the Polish and the local community with its products and services.
CEPD NV has employment level of over 3.5k staff through its various subsidiaries in multiple countries.
[1] PMR Report, „Cosmetic products retail marketing Poland, 2014. Market analysis and growth forecast for 2014-2019", [2] Ibidem.