Alliance UniChem buys Russian drug wholesaler

UK-based Alliance UniChem, a major European health care group, says that it has reached an agreement to enter the Russian pharmaceutical wholesale market through the acquisition of a 96% controlling stake in AP Apteka Holding, the parent company of Apteka Holding ZAO, for a total consideration of approximately L18.0 million ($31.4 million). In addition, Alliance UniChem, which has the option to acquire the remaining 4% of the company within three-six years, will assume around L10.0 million of net debt.

Apteka has been active in the Russian pharmaceutical wholesale market since 1997. Based in Moscow, it is the fifth-largest pharmaceutical wholesaler with a network of 20 depots across the country. It has just over 2,400 employees serving more than 12,000 pharmacies and 2,000 hospitals. It reported sales of L115.0 million for the year ending March 31, 2005 and, since 2001, has increased its sales at an annual compound rate of over 40%, making it one of the fastest-growing companies in the industry in Russia over the past five years.

The UK group estimates that the Russian pharmaceutical wholesale market is currently worth over L3.0 billion and is anticipated that it will expand at low double-digit growth rates for the foreseeable future. Apteka is well-positioned to benefit from ongoing growth opportunities, it says.