Segulah sells Medstop to Oriola-KD

Karin Wasteson
08 April 2013

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Segulah has agreed to sell Medstop Group Holding AB to Oriola-KD Holding Sverige AB for SEK 1.46bn.

The transaction, which is subject to approval by the Swedish Competition Authority (Konkurrensverket) and the Swedish Medical Products Agency (Läkemedelsverket), values the company at SEK 1.46bn including a conditional earn-out payment.

The transaction is expected to be completed in the second quarter of 2013.

Following the acquisition, Oriola-KD will have some 300 pharmacies in Sweden and its share of the Swedish pharmacy retail market will increase from 14% to approximately 21%. The acquisition is expected to create synergies in purchasing, warehousing and pharmacy distribution.

Oriola-KD contacted Segulah regarding the possibility of an acquisition, according to the GP. Negotiations took approximately three to four weeks.

The most important aspect for Segulah was to create a new and large player in the Swedish pharmaceutical market. Segulah wanted to sell to an industrial buyer, and was pleased with the outcome of the transaction, the GP told unquote".

Segulah acquired Medstop through the Segulah IV LP vehicle as part of the privatisation of the former pharmacy monopoly Apoteket AB in February 2010.

Company
The Medstop pharmacy chain has a total of 65 pharmacies located in the Stockholm, Gothenburg and Malmö areas in Sweden.

In 2012, net sales were SEK 2.3bn and EBITDA stood at SEK 99m, excluding non-recurring items. Medstop's share of the Swedish pharmacy market is 7.5%. The pharmacy chain has approximately 570 employees.

People
Peter Elving is chairman of Medstop and industrial partner at Segulah.