Under agreement terms, Atlantic Grupa will offload its company Fidifarm, owner of the Dietpharm supplement brand, to PharmaS, a privately-owned pharma company headquartered in Zagreb, Croatia.
Further terms also see PharmaS acquire Multivita, a regional food supplement brand owned by Atlantic Grupa, which offer a range of vitamins and mineral effervescent tablets for the Bosnia and Herzegovinian, Croatian, Montenegro, Russian and Serbian markets.
"PharmaS has proven to be a partner who acknowledges the value of the Dietpharm brand and of the people behind it, and recognises the fact that there is room for additional development, which makes us very pleased to have made this transaction a reality,” says Lada Tedeschi Fiorio, Atlantic Grupa's vice president for business development and strategy.
“Atlantic Grupa continues focusing on the development of its key categories, keeping the customer at the heart of all business activities.”
Since early 2018, the group have been undergoing consolidation, in which it looks to work on expanding the international reach of its stable of brands that include the Multipower, Champ and Multaben range of sports and functional foods.
In addition to its interests in coffee, beverages, savoury spreads, and sweet and savoury snacks, the company looks to further grow and develop its distribution capabilities as well as its Farmacia pharmacy chain.
Addition to Multivita brand
According to its 2018 annual report, the end of the first quarter saw a redesigned product line launch in regional markets via the Multivita food supplement brand.
Here, the line welcomed a range of energy boosting products including ‘Energy UP DIRECT,’ ‘Energy UP,’ effervescent tablets as well as the addition to the portfolio of ‘Vitamin C + Zinc DIRECT’ and ‘Magnesium DIRECT,’ granules.
Launched near the end of 2018, the newest product in the line, Immuno HOT DRINK is a lemon-flavoured food supplement available in sachet form that dissolves in hot water to aid the immune system while helping to reduce fatigue.
Atlantic Grupa’s annual report also reiterates Dietpharm’s “leading position in the Croatian dietary supplement market”.
“In Croatia, we are market leaders in the category of eye vitamins with a 49% market share and in the category of magnesium with a 35% market share,” the report states.
“In the category sleep and relaxation we have a 40% market share and in the category of vitamin C we have a 25% market share.”
End of year finalisation date
With the closure of the agreement expected by the end of the year, PharmaS can expect to add Fidifarm's sales income to its balance sheet, which in 2018 amounted to HRK 70m (€9.4m)
Meanwhile, sales income for Multivita amounted to around HRK 30m (€4m) in the same period. No financial terms of the latest agreement were disclosed.
“We are extremely pleased that the Dietpharm and Multivita brands will become a part of PharmaS's success story,” says Jerko Jakšić, PharmaS Group’s CEO.
“The value of the Dietpharm brand has been recognised in Croatia and in the region for decades, and is in the focus of our future growth.
“We are confident that our hard work with the Fidifarm team will strengthen this portfolio even further.
“This acquisition strengthens the position of PharmaS on the regional market in the Consumer Healthcare segment, which proves the dedication of the company to both of the programmes pursued – over the counter and prescription medicine,” he adds.
“PharmaS will continue following the strategy focused on innovative formulas in the development of its products."