Creating a Leading North European Healthcare Company
Oriola-KD Corporation and Dutch Mediq NV have today on 12 May 2010 announced an agreement to combine their healthcare businesses. According to agreement Oriola-KD is selling its all Healthcare Trade business operations in Finland, Sweden, Denmark, Estonia, Latvia and Lithuania. The agreement will make Mediq the single largest distributor of medical devices in the Northern Europe.
"We have invested in line with our strategy into the development of the Russian and Swedish pharmaceutical wholesale and retail businesses and consequently our resources to develop the Healthcare Trade businesses have been limited. This transaction enables Oriola-KD to focus on pharmaceutical retail and wholesale businesses with increased financial resources to develop and grow especially in Russia and Sweden, For our Healthcare Trade this will provide the best possible foundation to create a leading North European healthcare company as part of Mediq, which has a strong focus on healthcare business," said Eero Hautaniemi, President and CEO of Oriola-KD Corporation.
"The acquisition is a logical next step in our international growth strategy. Oriola-KD's Healthcare Trade business is a perfect addition to our existing direct and institutional business. Due to the similarity to our existing business we see a large potential for synergies and growth. Together we will form a strong team in the Nordics and Baltics," said Marc van Gelder, CEO, Mediq.
Strategic rationale for joining forces in nutshell:
• Fits Mediq's strategy to expand internationally in its growing direct and institutional activities
• Oriola-KD's Healthcare Trade business is a strong fit to the current direct and institutional business of Mediq, complementing Mediq's strong market position in Denmark and Norway
• Mediq enters five new countries securing complete market coverage of Nordic and Baltic countries
• With the expanded coverage Mediq becomes more attractive for suppliers as partner
• Increased volumes lead to economies of scale
• Companies have no direct competition or overlapping activities
Future Mediq has a market access to 14 countries in Europe and in the United States and is the single largest distributor of medical products in the Northern Europe. Mediq has a strong background in the consumable products and this arrangement will enable Mediq to further develop the business in the capital goods area. Acquisition will also open up additional opportunities to distribute laboratory products in the new markets. Healthcare trade to homecare and institutional customers is the core business within Mediq and it has plans to further develop that business in new regions. The ownership change does not create needs for major process changes as Mediq and Oriola-KD have only very little overlapping activities.
The present Oriola-KD's Healthcare Trade business will be a part of Mediq's direct and institutional business, which is managed by Jesper Boysen, Executive Vice President Mediq Direct & Institutional. He is a Danish national. Ilari Vaalavirta, Vice President at Oriola-KD Healthcare Trade continues to be in charge of the activities in Finland, Sweden, Estonia, Latvia and Lithuania. In Denmark the activities will be integrated with Mediq's existing activities. The closing of the deal is expected to take place during the second quarter of 2010.
Oriola-KD's Healthcare Trade companies in each country will continue their operations normally also after this announcement. We will keep you informed about the progress of the process and about the possible practical changes in each country.
Additional Information:
Ilari Vaalavirta
+358504292510
ilari.vaalavirta@oriola-kd.fi
Jesper Boysen
+4524656033
jesper.boysen@mediq.com
Mediq in brief:
Mediq is an international company delivering pharmaceuticals, medical devices and related care services. The patient is at the centre of everything we do. Mediq delivers via three channels: direct to people's homes (Mediq Direct), via hospitals, nursing homes and other healthcare institutions (Mediq Institutional) and via Mediq Pharmacies. Mediq operates in 14 countries: the Netherlands, Poland, the United States, Denmark, Germany, Norway, Sweden, Finland, Hungary, Switzerland, Belgium, Estonia, Latvia and Lithuania. Its head office is located in Utrecht, the Netherlands. The company was founded in 1899 and has around 8,200 employees. Mediq is listed on Euronext Amsterdam. Mediq reported € 2.6 billion net sales in 2009. For more information see www.mediq.com.
