STADA Arzneimittel AG — M&A Activity 2004

Dec 22, 2004

News Details

Ad-hoc | 22 December 2004 18:39

STADA successfully concludes negotiations to acquire Nizhpharm

DGAP-Ad hoc: Ad hoc update §15 WpHG Nizhpharm acquisition STADA successfully concludes negotiations to acquire Nizhpharm Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ STADA Arzneimittel AG has successfully concluded negotiations to acquire the Russian pharmaceutical company Nizhpharm OJSC, Nizhny Novgorod after the provisional agreement was signed on November 8, 2004 (see ad hoc release as of November 8, 2004, published by DGAP). The final agreements, signed today, specify that STADA will acquire approx. 97.5% of Nizhpharms shares for a total price of approx. EUR 80.5 million which is to be paid in USD. The sellers are the European Bank for Reconstruction and Development (EBRD), the Nizhpharm management and other institutional and private investors. The existing management at Nizhpharm will continue to run the Russian company. Completion of the acquisition is conditional upon Russian anti-trust approval. Nizhpharm is the fourth-largest local pharmaceutical company in Russia in terms of sales and is one of the fastest-growing suppliers in the Russian pharmaceutical market. In 2003, Nizhpharm increased sales in local currency by +28% to RUB 1,415.3 million and in Euros by +9% to EUR 40.8 million, respectively. These sales were mainly achieved with branded products. From todays perspective, Nizhpharm expects that net income after taxes, which amounted to RUB 172.6 million and EUR 5.0 million in 2003, could be almost doubled in 2004. Nizhpharm also anticipates that the strong earnings growth will continue in 2005. Nizhpharm employs around 1,250 people in total, thereof approx. 820 in its own production facilities. Nizhpharms product portfolio consists of more than 40 brand-name products with off-patent active ingredients. Approx. 74% of Nizhpharms sales in 2003 were in non-prescription drugs. The Russian market accounts for the major share (84%) of Nizhpharms sales. Substantial export sales by Nizhpharms own local subsidiaries are being achieved in Ukraine and Kazakhstan. From STADAs perspective, the acquisition of Nizhpharm is an important strategic step and is part of the expansion of Group activities in the CIS states within STADAs framework of ongoing internationalization. Further information: STADA Arzneimittel AG / Corporate Communications / Stadastrasse 2-18 / D-61118 Bad Vilbel / Germany / Phone: +49(0) 6101 603-113 / Fax: +49(0) 6101 603-506 / E-mail: communications@stada.de / Or visit our website at http://www.stada.com ISIN: DE0007251803, DE0007251845, DE0001069540, DE0001069557 WKN: 725180, 725184, 106954, 106955 Listed: DE0007251803 (MDAX), DE0007251845, DE0001069540 und DE0001069557: Official market in Duesseldorf and Frankfurt End of ad hoc announcement (c)DGAP 22.12.2004 221839 Dez 04