Grindeks Perorts on Purchase Agreement of HBM Pharma s.r.o.

OREANDA-NEWS. JSC "Grindeks" informs that in 2012 there was a purchase agreement conducted with “Dashdirect Limited” on acquisition of whole (100%) shares of “HBM Pharma” s.r.o. (Slovakia).

Total amount of the transaction is 13.1 million euro. JSC "Grindeks" has made the advance payment of 11.67 million euro. The remaining amount of the payment will be made after the re-registration of shares to JSC "Grindeks" according to Slovak legislation. It is planned that this transaction will be fully completed in 2014 and after its completion “HBM Pharma” s.r.o. will be included in the Group structure of JSC "Grindeks" Financing of purchase of shares is from the company's funds.

The core business of the company is manufacturing of pharmaceuticals and JSC "Grindeks" has conducted a long-term agreement on manufacturing of medication in form of injections. Orders of JSC "Grindeks" make up about 30% of the total “HBM Pharma” s.r.o. turnover.

Chairman of the Board of JSC "Grindeks" Juris Bundulis: “Taking into account the necessity to increase the manufacturing capacity of JSC "Grindeks", the most convenient solution is the acquisition of an existing manufacturing plant. This step corresponds to the strategy of the company to provide the vertical integration of the entire manufacturing process - research, development, manufacturing and sales of active pharmaceutical ingredients and final dosage forms. This transaction will significantly improve competitiveness of the Group in the international arena.”

After the completion of the transaction there will be 5 subsidiaries of "Grindeks" - JSC “Tallinn Pharmaceutical Plant” (Estonia), JSC “Kalceks” (Latvia), “Namu apsaimniekosanas projekti” Ltd. (Latvia), "Grindeks" Rus Ltd. (Russia) and “HBM Pharma” s.r.o. (Slovakia).

The turnover, operational net profit and dividend payment:

“HBM Pharma” s.r.o. is not involved in court or arbitration proceedings.