RFCL Limited, an ICICI Venture company, has signed its first global acquisition in the space of veterinary healthcare through a share purchase agreement with Marsing and Co Limited A/S for its Germany-based subsidiary Bremer Pharma GmbH for an undisclosed amount.
Bremer Pharma has been into research, manufacturing and supplying veterinary medical preparations including powders, tablets, solutions, suspensions and injectables for over 26 years, through a worldwide distribution network. It has 803 global registrations across Europe, Middle East, Asia and Africa.
The agreement is for transfer of all key people, assets, brands and the name "Bremer Pharma," and all contracts including exports. RFCL will gain a marketing foothold in Bremerhaven, near Hamburg and a state-of-the-art manufacturing base in Warburg-Scherfede.
Bremer Pharma brings along an extensive quality assurance system, certified according to DIN ISO 9001:2000 and based on the requirements of the EDQM guidelines, guaranteeing transparency and optimisation of all work flows in the organisation, an RFCL release said.
Close on the heels of Alved's acquisition in January 2008, this initiative will propel RFCL's Animal Healthcare business under the SBU, Vetnex, onto the global map.
RFCL's Animal Healthcare business under Vetnex is expected to achieve a turnover of Rs 900 million for FY 08, registering a growth of almost 22 per cent over the previous year, which is in line with the company's objective to aim for double the market growth for all of its businesses. Combined with sales revenue of Bremer Pharma and Alved, RFCL's veterinary product portfolio will be in excess of Rs.1600 million and would be amongst the top 25 global integrated veterinary healthcare players by 2009.
Commenting on this inorganic growth initiative for RFCL and its Veterinary business Vetnex, Sushil Mehta, managing director, RFCL Limited, said, "We believe that this agreement is the first step taken by RFCL to establish itself as a fast growing, global integrated player in Life Sciences and veterinary solutions provider. This acquisition will give us a strategic platform to enter the European and Middle East markets."
The acquisition of Bremer Pharma brings in a young and dynamic team of 53 employees including veterinarians, marketing professionals and manufacturing specialists for better efficiency and customer service, according to a company statement.
Goran Hunder, managing director, Bremer Pharma, said, "As businesses become global we need to explore such strategic mergers & acquisitions to attain the cherished goal of attaining a leadership position in the field of integrated veterinary solutions."
The sellers intend to divest the animal health business and concentrate on their core business of active pharmaceuticals ingredients.