Canada's PanGeo Pharma group has acquired the Quest Consumer Health Care business of Boehringer Ingelheim (Canada) for approximately C$14 million (€10m).
Under the terms of the deal, PanGeo will acquire the contracts to manufacture products for Boehringer Ingelheim for distribution in the US, as well as distribute Pharmaton products for Boehringer Ingelheim in Canada. PanGeo will also acquire a manufacturing plant, the Quest brand, and other internationally recognised brands.
According to Boehringer Ingelheim, in fiscal year 2001, the products being acquired from Quest Consumer Health Care recorded approximately $18 million in revenue and have shown solid growth over the last five years.
PanGeo said it would continue to position the Quest brand and the international brands as premium healthcare brands in Canada. The addition of 50,000 square foot manufacturing and distribution facilities located in Vancouver, BC, will enhance PanGeo's production capabilities for the Canadian and Japanese markets.
"This acquisition enhances PanGeo's contract manufacturing, distribution and brand management capabilities across Canada," stated chairman Ahmad Doroudian. "We continue to execute our strategy by delivering solid internal growth and acquiring significant product portfolios of large pharmaceutical companies which are accretive to PanGeo. Adding Quest and the international brands to the PanGeo family strengthens our presence in retail pharmacies, mass merchandisers and food stores across Canada, and opens new channels of distribution in the health and wellness retail industry."
Quest was acquired by Boehringer Ingelheim (Canada) in 1993. The division is responsible for managing the sales and marketing in Canada of such international brands as Ginsana, Kyolic, Venastat, Ginkoba and Prostatonin. The division has a manufacturing facility in Vancouver, British Columbia, a national sales force and a sales and marketing office in Burlington, Ontario.