With a new name for Sindan Bucuresti producer of oncology drugs and with investment plans worth around 35 million euros in a new production facility, Iceland's Actavis group is trying to gain a position among the top three players in the domestic pharmaceutical industry.
At the end of last March, Actavis group, one of the world's top ten generics producers, announced it acquired Sindan for almost 150 million euros. "I received an e-mail from a colleague from Bulgaria, telling me about this oncology drugs company of Romania. I later on got in touch with the former owners, who were already working with consultants for the sale," recalls Robert Wessman, chairman and CEO with Actavis group in an interview with ZF.
Actavis was not the only company eager to include one of the biggest producers of oncology drugs in Eastern Europe in its portfolio. (...) The Icelanders were the last to join the race for Sindan and yet the price and offered guarantees were accepted by Dan Stoicescu, the founder of the producer.
The due-diligence process had been launched as early as the beginning of 2005 and the fact that they were the last to enter negotiations was not to their disadvantage.
"We realised at that moment that by buying Sindan we could become one of the main players on the segment of oncology drugs. We focused all our efforts on this acquisition," said Wessman.
At the moment he entered talks for the acquisition of Sindan, Actavis' top man says he had no plans to purchase other companies in Romania.
The deal with Sindan was signed at 8.6 times the value of EBITDA. Actavis' first step after the acquisition of Sindan was to appoint a new country manager, namely Laurentiu Scheusan. Then, the company launched procedures for the registration of Sindan products in Europe and the US and the setting up of a retail team.
The last stage of the integration process was carried out last week, when the name of the domestic producer was changed into Actavis.
In terms of post-acquisition plans, Actavis intends to invest in a new production facility worth around 35 million euros. The facility is due to be finalised in 2010 and may double the number of Actavis employees in Romania to over 600 people. Meanwhile, the domestic team is analysing the market for the acquisition of the plot of land.
In 2006, Sindan reported 95 million-euro sales, of which 10 million euros were derived from exports. The company this year plans to export 15 million euros' worth.
In terms of the company's turnover, it could double by 2009 to over 200 million euros.
Actavis Romania plans to grab 2.5% of the producers segment in 2007, from 2% at the end of last year. The Icelanders launched 7 products domestically in 2006 and plan to introduce another 17 products this year.
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