Ascendis CEO, Dr Karsten Wellner says, "The acquisition of these health products is an exciting addition to the Consumer Brands division. Their integration allows us to unlock value by taking advantage of immediate synergies and efficiencies already within our group particularly via production, marketing and distribution channels. The earnings effects calculation shows that the acquisition would have driven an 8% increase in Ascendis' earnings per share for the six-month period ended 31 December 2013."
The acquired products have a long record of accomplishment over 15 years and enjoy market-leading positions in the domestic vitamin and mineral market segments.
The Arctic strategy has been to develop, launch and distribute an innovative and niche range of nutraceuticals backed by strong research and published clinical trials, resulting in defensible positions through patent protection for many of their molecules. Much of the focus has been aimed at the mineral market, with three of Arctic's products being market leaders in their particular category thereby presenting Ascendis with an attractive proposition for additional local and export growth opportunities in the coming years.
The strength of the Arctic products' respective market positioning and the quality of their underlying earnings is further demonstrated by their aggregate compounded annual revenue growth being in excess of 15% for the past five years.
These brands are well supported by professionals, due to Artic Healthcare's focus on quality and product differentiation. The sustainable quality and production of the acquired brands going forward will also be supported by Ascendis recent investment into PharmaNatura with its GMP accreditation and focus on the highest standards of innovation, production, marketing and distribution.
"The products are a perfect bolt-on acquisition for the company, as they exemplify our commitment to expanding our national and international footprint aggressively through the acquisition of mature, well managed and resilient products and brands, which command market leading positions within their respective categories. The purchase of the brands without the associated fixed overhead structure will further contribute positively towards our groups sustainable earnings," concludes Wellner.
For more information, go to www.ascendis.co.za.
