STADA strengthens its branded product portfolio by purchasing the Flexitol® rights for UK and Ireland – a dermatological range in the area of hand and foot care
- Press Release
Bad Vilbel, June 30, 2014 –
The British affiliate of STADA Arzneimittel AG, Thornton & Ross Ltd., purchased the production and distribution rights for the Flexitol® brand product portfolio in the United Kingdom and Ireland.
The net purchase price for the rights to the Flexitol® product range is 10 million pounds sterling (approximately Euro 12.49 million at current exchange rates) payable in cash subject to adjustments for inventory. The sellers are the LaCorium group of companies based in Sydney, Australia. The purchase does not include any production facilities. In order to optimize cost of sales, it is planned to transfer the production of nearly all of the products sold in UK and Ireland to Thornton & Ross’ in house manufacturing facilities.
The product package comprises 15 prescription-free (OTC) and prescribable (OTX) products in the area of hand and foot care. In 2013, net sales generated in the United Kingdom and Ireland with this dermatological range was approximately 3.3 million pounds sterling (approximately Euro 4.1 million at current exchange rates). In 2013 the Flexitol® product portfolio posted an EBITDA margin which is significantly above the average in the STADA Group.
“The acquisition of the Flexitol® dermatological range fits perfectly with our strategy of further accelerating the expansion of attractive-margin branded products. We will benefit from the purchase in terms of product sales in the United Kingdom and Ireland”, says Hartmut Retzlaff, Chairman of the Executive Board of STADA Arzneimittel AG. “Another interesting point of the acquisition is that the strongest selling product in the United Kingdom is positioned in the prescribable area and is included in the reimbursement list of the National Health Service in the United Kingdom”, adds Retzlaff.
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