EBRD acquires share in Katren

2012-01-17



The European Bank of Reconstruction and Development (EBRD) is to acquire a 15% share in Russian pharmaceutical distributor Katren. The deal is estimated at $38-150m, depending on different experts' opinions. Katren's entire business, the second largest Russian distributor of medication products, is estimated at between $250m to $1bn. EBRD will receive a stake in Katren through the latter's additional shares issue.

The assets, attracted from EBRD, are to finance the development of company storage capacity, as well as prospective M&A deals in Russia and the CIS countries.

Notably, EBRD has already been a shareholder of Katren – in 2000, the bank acquired a 31.4% share of Katren for some $3m, but sold the stake for $12m after five years.

Since 2007, the distributor has been operating a retail pharmacy chain of Melodia Zdorovya, currently encompassing 232 outlets in 39 Russian regions. Katren operates in Russia, Ukraine, Kazakhstan and Belarus, while the Russian business takes up 86% of its total revenues.

As Retail Update Russia informed, the retail segment of Katren (represented by the Melodia Zdorovya) increased its revenues in 2010 by 58% year on year to $86m. Overall, the Katren group of companies increased its revenue during the period in question by 23% year on year to $2.54bn.