Acquisitions and divestments
Oriola decided to make an additional investment (50 million SEK) in Doktor.se, a leading Swedish e-health provider, in their latest investment round. Oriola has been investing in Doktor.se since 2018. The new investment will not have a significant effect on Oriola’s ownership which is approximately 14% of Doktor.se.
In 2016, Oriola acquired 70.9 per cent of Farenta, a Finnish company offering services for pharmaceutical companies and pharmacies. Based on the agreement Oriola had an obligation to acquire the remaining share of Farenta.
Oriola subscribed for shares in Doktor.se, a Swedish online medical centre, giving it an ownership of approximately 17% of the total number of shares in Doktor.se. Doktor.se is the second largest online medical centre in Sweden, and it offers personal digital healthcare services to its customers.
Oriola has completed the acquisition of ICTHS Health Support announced on 3 July 2017. ICTHS Health Support, founded in 2007, provides services to pharmacies, pharmaceutical companies and healthcare operators. In 2016, the company’s net sales were approximately 5 million euros, and the company employs around 60 people. The acquisition of ICTHS Health Support is in line with Oriola’s strategy to offer a wide range of services to pharmacies, pharmaceutical companies and healthcare operators in Sweden and Finland.
Oriola-KD acquired 70.9 per cent of Farenta, a Finnish company offering professional services to pharmaceutical companies and staffing services to pharmacies. Farenta serves over 100 pharmaceutical companies and 300 Finnish pharmacies. Nearly 8,000 pharmaceutical professionals use Farenta’s eServices regularly.
Oriola-KD acquired of PharmaService Oy, a Finnish company offering dose dispensing supporting services from the Association of Finnish Pharmacies and Orion Corporation. PharmaService provides supporting services for automated dose dispensing of medicines (Anja) to pharmacies in Finland, serving approximately 20,000 of the pharmacies’ customers. PharmaService has approximately 50 employees and it is based in Helsinki.
Oriola-KD completed the acquisition of Svensk Dos, announced on 3 December 2015, according to plan on 8 February 2016. Svensk Dos will be reported as part of Oriola-KD’s Healthcare segment. Svensk Dos is specialised in dose dispensing of pharmaceuticals. Svensk Dos provides dose dispensed medicines to 24,000 people via extradition locations and nursing homes in the region of Skåne and direct to the Swedish Prison and Probation Service all over Sweden. Svensk Dos has approximately 60 employees and is based in Uppsala.
Oriola-KD's subsidiary Oriola Oy has signed an agreement to acquire the share capital of "SIA Rigas Elizabetes aptieka", a pharmacy in Latvia in Riga city center. The parties have agreed not to disclose the transaction value. The pharmacy will be named according to online pharmacy InternetAptieka.lv that is opened early in the year 2014 and owned by Oriola. The product assortment consists of OTC and Traded goods.
Oriola-KD acquired Sweden's fifth largest pharmacy chain Medstop Group Holding AB "Medstop") from Segulah Management IV Limited. The total value of the acquisition was SEK 1460 (EUR 176) million, comprising of three separate items: a SEK 680 (EUR 82) million cash payment, net debt of the acquired company, and a conditional earn-out payment payable on the basis of the consolidated 2015 EBITDA of Oriola-KD's combined Swedish Retail business. Oriola-KD financed the acquisition in full with a bank loan.
Oriola-KD acquired the 20 per cent minority share in Swedish retail company Kronans Droghandel Apotek AB (Kronans Droghandel) from Kooperativa Förbundet ekonomisk förening (KF). The acquisition price paid in cash is approximately EUR 12.3 million. As a result of the share acquisition Oriola-KD booked a EUR 3.5 million financial income which has no cash flow impact. After the acquisition Oriola-KD Corporation owns 100 per cent of Kronans Droghandel.
Oriola-KD acquired 100 per cent ownership of the Moscow-based Russian pharmaceutical retail company OOO 03 Apteka, which operates 70 pharmacies in Moscow and the Moscow region. The final purchase price was expected to be some 12 MEUR, and will be finally determined in accordance with terms and conditions of the transaction by the end of 2010. The purchase price is paid in cash.
Oriola-KD acquired the remaining 25 per cent of the shares of Moscow-based pharmaceutical retail company OOO Vitim and the pharmaceutical wholesale company OOO Moron. After the acquisition Oriola-KD owns 100 per cent of its Russian subsidiaries. The acquisition price for the remaining 25 per cent is EUR 65.0 million. The total purchase price paid for the Russian companies is EUR 153.7 million in cash. In addition Oriola-KD has provided the Russian companies with long-term financing amounting to approximately EUR 65 million.
Oriola-KD and Kooperativa Förbundet (KF) signed a share purchase agreement with Apoteket AB (publ) on the acquisition of 100 per cent of the shares of Pharmacy Company Sweden 2 AB, a national pharmacy cluster with 171 pharmacies. According to the shareholders’ agreement, Oriola-KD holds an 80 per cent ownership and KF 20 per cent in the company. The acquisition was closed on 19 February 2010 and the final purchase price of the acquisition was EUR 161.0 million. Acquisition was paid in cash.
Oriola-KD increased its holding in Kronans Droghandel AB in Sweden from 98.13 per cent to 100.00 per cent after acquiring the minority holding of Organon AB in KD on 6 March 2009. The share purchase was paid in cash. Purchase price was not disclosed.
Oriola-KD increased its holding in Kronans Droghandel AB in Sweden from 85.62 per cent to 98.13 per cent after acquiring the minority holding of Merck Sharp & Dohme (Sverige) AB in KD. The share purchase was paid in cash. Purchase price was not disclosed.
Oriola-KD signed an agreement to acquire a 75 per cent share of the Moscow-based Russian pharmaceutical retail and wholesale companies Vitim & Co and Moron Ltd. The acquisition consideration was EUR 70 - 90 million based on the financial performance of the acquired companies in 2008. Oriola-KD also agreed to acquire the remaining 25 per cent share of the companies in 2010 at a value based on the financial performance of the companies in 2009. The acquisition of Vitim and Moron was a major strategic step forward for Oriola-KD in investing in Russia’s fast-growing pharmaceutical market. The closing of the transaction took place on 21 April 2008.
Oriola-KD increased its holding in Kronans Droghandel AB in Sweden from 82.69 per cent to 85.62 per cent after acquiring the minority holding of Astra Arcus AB in KD. The share purchase was paid in cash. Purchase price was not disclosed.
Oriola-KD increased its holding in Kronans Droghandel AB (KD) in Sweden from 69.39 per cent to 82.96 per cent after acquiring the minority holdings of Pfizer AB and Pfizer Health AB in KD. The share purchase was paid in cash. Purchase price was not disclosed.
Oriola Corporation and Euroapotheca finalised the combining of Kronans Apotek and Apoteksgruppen into a new jointly owned company. The new company is owned 50/50 percent equally by Oriola and Euroapotheca. The transaction supports Oriola in its transformation as it focuses on being an infrastructure company of pharmaceuticals and healthcare distribution and providing services to pharmaceutical companies and pharmacies.
Oriola announced it has decided to sell the entire share capital of its pharmacy staffing service company Farenta Oy to Eezy. The divestment is a part of renewing Oriola's operating model and will bring more focus. The transaction will not have an impact on Oriola's result. The divestment was completed on 1 April 2022. The parties have agreed not to publish the purchase price.
Oriola Corporation and the Euroapotheca group signed a framework merger agreement on 9 February 2022 for combining Oriola’s Consumer business area comprising Kronans Apotek and Euroapotheca’s Apoteksgruppen into a new company in Sweden. The new company is to be owned 50/50 percent equally by Oriola and Euroapotheca.
In the transaction, Oriola Consumer’s enterprise valuation is approximately EUR 400 million. Apoteksgruppen is valued at approximately EUR 300 million. Oriola Consumer’s net debt and liabilities (IFRS 16 leases and factoring liabilities) of approximately EUR 134 million are to be transferred to the new company at the closing, and Apoteksgruppen is to transfer net debt of approximately EUR 82 million into the new company. Oriola is to receive a one-off cash consideration of approximately EUR 24 million from Euroapotheca for reaching the 50/50 percent ownership in the new company.
The transaction was subject to competition authorities’ approval, which was granted on 30 June 2022. The completion of the merger is expected to take place early October 2022.
Oriola announced that it has decided to sell up to 50% of its approximately 14% ownership share of Doktor.se, a leading Swedish e-health provider. The sales price is approximately SEK 340 million. Oriola remains one of the largest shareholders in Doktor.se.
Oriola completed the sale of its Baltic businesses. On 14 August 2017 Oriola announced that it had signed an agreement to sell its Baltic businesses to the companies’ existing management (SIA Oribalt Group). Oriola’s Baltic businesses comprise of the following subsidiaries: AS Oriola, Oriola Estonia Oü, SIA Oriola Riga, SIA Panpharmacy, and UAB Oriola Vilnius. The net sales of the Baltic businesses in 2016 were EUR 54 million, the adjusted EBIT EUR 1.2 million and the number of personnel 160. Oriola will focus on developing its businesses in the Nordic countries.
Oriola-KD Corporation has entered into an agreement to sell its Russian businesses to the Russian pharmacy chain CJSC "Apteki 36.6" on 8 December 2014. The cash and debt free selling price is RUB 3,700 million, equivalent to approximately EUR 56 million. The price has been paid in cash. The decision to sell the Russian businesses was based on Oriola-KD's estimates on the outlook of the Russian pharmaceutical markets, on the competitive environment and the further development of profitability of the Russian businesses.
Oriola-KD sold its minority holding of 30 per cent in Lifco Dental International AB, to Lifco AB. Lifco paid approximately EUR 69 million in cash for Oriola-KD’s minority holding. Oriola-KD recognised a profit of some EUR 37 million from the transaction. The sale of the Dental Trade business supports Oriola-KD’s strategy to focus on pharmaceutical retail and wholesale businesses.
Oriola-KD signed an agreement to sell its Healthcare Trade businesses to the stock listed Dutch company Mediq N.V., international provider of pharmaceuticals and medical devices. The sale of the Healthcare Trade business supports Oriola-KD’s strategy to focus on pharmaceutical wholesale and retail businesses. According to the agreement all Oriola-KD’s Healthcare Trade businesses in Finland, Sweden, Denmark, Estonia, Latvia and Lithuania will be transferred to Mediq. The closing took place on 31 May 2010. Mediq paid EUR 85 million in cash for the acquisition. Oriola-KD recorded a profit of approximately EUR 60 million from the sale of the business.
Oriola-KD and Swedish Lifco AB agreed to merge their dental wholesale businesses in Finland, Sweden, Norway, Denmark and the Baltic countries to form a new market leader in Northern Europe. Furthermore, Oriola-KD increased its stake in the new company to be founded to 30 per cent through a further cash contribution of EUR 14 million. Lifco will have a 70 per cent stake of the new company.