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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 21:29

Olainfarm buys Tonus Elast medical goods maker for EUR 14 mln

BC, Riga, 12.05.2016.Print version
Latvian pharmaceutical company Olainfarm has acquired Tonus Elast medical goods producer, 50% of which belonged to former Saeima member Valerijs Kravcovs until February 2014, Olainfarm said in a statement to the press, cites LETA.

Olainfarm has spent EUR 14 million on the acquisition, the company said.

 

Olainfarm CEO Valerijs Maligins and Tonus Elast co-owners Ludmila Cecotkina and Irina Vinvalka signed an agreement whereby Olainfarm acquired 100% shares in the above producer of elastic medical products.

 

Maligins said that Tonus Elast had been familiar to Olainfarm already since 2010 when Olainfarm represented the medical goods producer in Ukraine.

 

"We appreciated the high quality of their products and witnessed considerable demand. It was then that we saw that the company has significant exporting potential to other markets as well and identified it as an acquisition target. Tonus Elast, similarly to Olainfarm has demonstrated significant development over the last several years and we think that with our marketing and expansion experience we can even better utilize potential that Tonus Elast has," Maligins said.

 

According to information from Firmas.lv, Tonus Elast closed 2014 with EUR 6.88 million in turnover and a profit of EUR 1.51 million. The company, established in 1995, has a share capital of EUR 2,007,500. Until now, Tonus Elast belonged in equal parts to Cecotkina and Vinvalka.

 

Salvis Lapins, a board member of Olainfarm, said previously that the pharmaceutical group was about to buy another company but would not specify its line of business. He said only that it was not a pharmaceutical company but its business was related to the pharmaceutical industry.

 

As reported, the Olainfarm group posted EUR 15.3 million in net profit for 2015, according to the group's audited consolidated profit and loss statement. This represents an increase by 25% compared to the net profit of 2014 and by 8% compared to the net profit of 2012, when the previous profit record of EUR 14.2 million was set. The parent company's net profit in 2015 was EUR 14.6 million, which is an increase by 28% compared to the net profit of 2014.

 

Sales of the Olainfarm group in 2015 reached EUR 97.4 million, up 4% compared to 2014 sales of EUR 93.7 million euros and the highest sales ever reached by Olainfarm group so far. Sales of the parent company in 2015 were EUR 84.7 million, also up 4% from 2014 when its sales amounted to EUR 81.6 million and a new record-high for the parent company as well.

 

Olainfarm shares are quoted on the Main list of Nasdaq Riga stock exchange. The company's largest shareholder is its board chairman, Valerijs Maligins.






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