| Mon 28 Aug 2006, 9:32 | | Enaleni Pharmaceuticals Limited - Strategic acquis |
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Enaleni Pharmaceuticals Limited - Strategic acquisitions strengthen
Enaleni
Enaleni Pharmaceuticals Limited
(Incorported in the Republic of South Africa)
Registration number: 2002/018027/06
JSE Code: ENL
ISIN: ZAE000067740
Press Release
Embargoed: August 2006
Strategic acquisitions strengthen Enaleni
Enaleni Pharmaceuticals Limited, South Africa"s fastest growing
pharmaceuticals group, has bought three companies that fit comfortably
into its existing operations and will add significant value to its
consumer and vitality product range.
The group has acquired:
- the 49% of vitality-and-wellness company Bioharmony that it did
not already own, making it a wholly-owned subsidiary;
- Galilee Marketing, a producer and marketer of natural medical
remedies, including menopausal treatment Meno Clove; and
- Adroit Pharmaceuticals, a manufacturer of over-the-counter brands,
including Sunsafe sun-protection creams and Femmevit
multivitamins.
The deals were funded using a combination of debt and equity. They were
small acquisitions that will contribute approximately R20 million to
the Enaleni group"s revenues and are part of the continuing process of
adding critical mass to its Consumer and Vitality division.
"These companies will integrate very smoothly into Enaleni"s set-up,"
said Enaleni chief executive officer Trevor Edwards. "Bioharmony is
already a valuable member of the Enaleni family, and Galilee"s and
Adroit"s brands compliment our existing product ranges. We expect to
achieve significant cost-saving and marketing synergies as these brands
and operations become our own."
Enaleni bought 51% of Cape Town-based Bioharmony in May 2005. It has
been operating successfully within the group"s structures, growing
sales at 32% in the past year, but Edwards said the completion of the
takeover would make even better performance a real possibility.
Bioharmony operates in the rapidly growing wellness market which is
worth in excess of R3 billion in South Africa.
"Full integration of Bioharmony into the Consumer and Vitality division
will allow this business to realise its full potential," said Edwards.
"We will now be able to invest more aggressively in the Bioharmony
brands.
"Bioharmony"s chief executive and founder, Maria Ascencao, will retain
her current responsibilities, thus ensuring continuity of standards and
strategy. As a substantial shareholder in the Enaleni Pharmaceuticals
group, Maria is in complete strategic alignment with the rest of the
business, and has signed a long-term contract committing herself to the
group. Essentially, this is business as usual because Bioharmony has
already been integrated into our set-up."
Galilee"s Meno Clove, which dominates the market in the natural
treatment of menopause, fits well into Bioharmony"s product range and
will become a Bioharmony brand. Edwards said because Galilee was also
based in Cape Town, synergies would be achieved, increasing
Bioharmony"s critical mass, raising its profile and establishing a
platform for a new range of natural health products targeting women.
Galilee"s Fix Nasal Sniffer, which uses natural aromatic oils to
relieve a stuffy nose caused by colds, flu and hay fever, and its self-
diagnostic pregnancy, drug and menopause kits are to become Enaleni
consumer division brands, joining Healing Hands, Hercules, Caivil, Just
For Baby and Black Chic as Enaleni products.
Johannesburg-based Adroit Pharmaceuticals" brands are to fall under
Durban-based Enaleni subsidiary FirstPharm. Apart from Sunsafe and
Femmevit, Adroit also manufactures over-the-counter products such as
colds and flu spray Zicol, saline nasal spray Ocean and liver
protection pill Liverguard.
These brands will bolster FirstPharm"s move into the retail pharmacy
market and consumer chain stores. Since the Adroit products are not
registered, FirstPharm will be able to start marketing them immediately
and has hired five new sales representatives as well as a new national
sales and marketing manager to accelerate the process. Other FirstPharm
brands include Alkafizz, Ibumax, Gelacid, Vitacare and Steridine.
"Enaleni continues to explore strategic acquisitions that fit with the
existing business and which, preferably, can be integrated into our
structures," said Edwards. "Each acquisition builds critical mass and
allows us to extract value, complete product portfolios and move into
new therapeutic categories.
"Enaleni has already demonstrated the ability to extract value from
acquisitions, to integrate them well, to retain their executives -
mainly previous owners - and to build their businesses. This is evident
in the strong performances we"re getting from them. However, we
continue to explore ways of extracting even further value through
information sharing, implementing standards of best practice, increased
brand building activities and extracting cost synergies."
Ends
Issued on behalf of Enaleni Pharmaceuticals by:
AHOY! PR
Contact: Dermott White
Tel: 031 201 4382
E-mail: dermott@ahoypr.co.za
More about Enaleni
Founded as a start-up in 2003, Enaleni Pharmaceuticals Limited is the
fastest growing pharmaceuticals company in South Africa and has
developed into a group with a market capitalisation of approximately
R1.7 billion. Now listed on the JSE, it is the country"s third largest
generics provider and one of the top 10 pharmaceuticals companies in
South Africa. It is also the country"s top black economic empowerment
pharmaceuticals company and the fourth most empowered company quoted on
the entire JSE, as rated by the Financial Mail. Enaleni also has an AA
rating from empowerment ratings agency Empowerdex.
The company has now completed 10 takeovers since 2003, extending its
product range from pharmaceuticals and medicines to cosmetics and
vitality and wellness products. The largest of these acquisitions was
generics pharmaceutical company Cipla Medpro in November 2005, at
R1.2 billion one of the biggest deals ever in the domestic
pharmaceuticals industry.
Enaleni"s strategy is to build a well-balanced portfolio of two
business units, the Pharmaceutical division and the Consumer and
Vitality division. The Pharmaceutical division includes Cipla Medpro,
FirstPharm and the contract manufacturing business. The division has
increased its market share in the past year from 12th position to 10th,
according IMS.
The consumer business continues to focus on affordable health- and
personal-care products and includes vitality and wellness brands
Bioharmony and Muscle Science.
Based in Durban, Enaleni is the largest pharmaceuticals manufacturer in
KZN. It employs more than 600 people, and operates out of a 15 000
square metre manufacturing facility.
Visit www.enaleni.com
Date: 28/08/2006 09:32:06 AM Produced by the JSE SENS Department
