Erkafarm acquires regional chain
2010-01-25
Erkafarm, the operator of
Doktor Stoletov pharmacies, has acquired the
Vita Bay+ chain, the market leader in Taganrog (Rostov Province) in terms of number of pharmacies and turnover. The value of the deal has not been disclosed.
Erkafarm already operates five Doktor Stoletov pharmacies in Taganrog in addition to the nine newly acquired Vita Bay+ units. Overall, the Doktor Stoletov chain comprises 422 outlets in Russia.
It is worth noting that this is the first M&A deal on the Russian pharmacy market in the last 18 months.
According to PMR Retail Analyst Magdalena Gis, the large pharmacy retailers in Russia that implemented business-optimisation strategies during the economic crisis in order to preserve profitability may revive their interest in expanding and acquiring regional operators this year. Doktor Stoletov for several years now has been developing dynamically through acquisitions. Also this year the company does not plan to embark upon organic expansion. It is also one of the chains which, despite its rapid development, was able to maintain financial stability during the crisis. Indeed, the financial problems being experienced by many retailers and the declining value of assets have served to create favourable conditions for consolidation on the market. What’s more, some of the largest players on the market, such as 36.6, have suffered as a result of the crisis and this might make a small-scale reshuffle of the market possible.
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