Pro Ads:ANZAG Acquires Majority Stake in Lithuanian Pharmaceutical Wholesaler Armila

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Jul. 16, 2008

FRANKFURT - Andreae-Noris Zahn AG (ANZAG)(GER:ANZ)(FWB:FANZ) yesterday signed a share purchase agreement to acquire a 92-per-cent stake in Lithuanian pharmaceutical wholesaler JSC Armila. "By acquiring Armila, we are expanding our business in foreign markets, and so reducing our dependency on our home market of Germany, and our vulnerability to cyclical fluctuations here," says Thomas Trumper, Chairman of the Board of ANZAG.

With a market share of 13 per cent, Armila is one of Lithuania's largest pharmaceutical wholesalers. The company is headquartered in Vilnius, and also has sales offices in Kaunas, Klaipeda and Siauliai. Armila's 105 employees supply around 1,500 customers throughout Lithuania and the neighbouring Baltic States, most of them pharmacies and hospitals. In 2007, the company recorded sales of just over 62 million euros. Armila's business model is - like that of ANZAG - based on forging strong relationships with independent pharmaceutical retailers. In 2006, it introduced a programme called "100 metu vaistine" ("100 years of pharmacy"), which 70 retailers have currently signed up to, among them the oldest pharmacy in Lithuania. Ensuring ANZAG's future profitability

In recent years, the market for pharmaceuticals in Lithuania has seen consistent double-digit growth. Following recent acquisitions in Croatia and Romania, the purchase of Armila represents the latest stage in ANZAG's strategy to establish itself in carefully targeted high-growth markets.

"Returns on sales for pharmaceutical wholesalers in Germany have been falling for years now, and the possibility of further changes to the legal framework for the distribution of pharmaceuticals cannot be ruled out," says Trumper. "As a result, we are increasingly seeking to offset the risks to our business within Germany by expanding into other markets. The acquisition of Armila marks the next step in this successful strategy of working closely together with local management to exploit the potential of attractive, fast-growing European markets. At the same time, we remain true to our principles - we do not want to grow at any cost, but invest only where there is an opportunity to achieve good results by working with suitable partners."

For these reasons, Armila will continue to be run by its existing Lithuanian management team. "ANZAG always seeks to encourage entrepreneurial values, both in the way it cooperates with pharmacies and through its acquisitions strategy. I am convinced that the skill and long experience of the local management will ensure the company's success continues," says Trumper. Comments Remigijus Mielinis, CEO of Armila: "Over the past few years, we have put in place a sustainable business model, but to keep growing, we need a strategic partner - and ANZAG represents the perfect choice. The combination of our in-depth knowledge of the market and strong customer relationships with ANZAG's quality of service and logistical expertise will allow us to achieve continued success." About ANZAG

Andreae-Noris Zahn AG, or ANZAG, is one of Germany's leading pharmaceutical wholesalers. The company employs around 2,500 full-time staff and 158 trainees, and holds stakes in two companies outside Germany. In 2007, it recorded sales of 3.7 billion euros. With 24 sites throughout Germany, ANZAG has the country's most extensive distribution network. Through initiatives such as its vivesco programme, the company helps pharmaceutical retailers to remain competitive in a fast-changing market environment. ANZAG is listed in the General Standard of the Frankfurt Stock Exchange, with the ISIN number DE0005047005 and the stock symbol "ANZ".

SOURCE: Andreae-Noris Zahn AG

Andreae-Noris Zahn AG

Thomas Graf, Press Office & Corporate Communications

Tel. +49 (0)69 7920 3124

Fax +49 (0)69 7920 3429


Internet: ANZAG SITE



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