VENTURES: Ascendis Health Acquires Avima
Recent Western Cape Business News
Ascendis Health, the wholly owned health and care subsidiary of Coast2Coast Investments, has through its subsidiary Efekto Care, together with existing management, finalised the acquisition of Avima for close to R80 million.
This is the third acquisition within eight months for the health and care company which previously acquired Efekto Care and Sportron for a combined R260 million in October 2011, and is currently in the advanced stages of acquisition negotiation with additional like-minded companies.
Founded in 1961, AVIMA is a leading South African pesticide manufacturer, with an impressive 180 pesticide registrations, an annual turnover of approx R120 million, and solid profit growth. Avima works closely with governments, mining houses, NGO’s and agents & distributors to commercial and subsistence farmers, on sustainable plant, household, animal pest (including Tsetse fly, locust and malaria vectors) and disease control. The company has an innovative product development programme and a strong foothold in Africa, having established relationships with 30 countries throughout the continent.
The Avima acquisition has strategic advantages for Ascendis Health. It opens up new sales channels into Africa for the Efekto subsidiary (the South African market leader in home and garden protection and fertilizers), whilst Avima will gain access to the wide spread Efekto markets. Furthermore, both Avima and Efekto will benefit from joint purchasing and, in the mid-term, from sharing of crucial infrastructure such as warehousing and production. Avima will also benefit from back-office integration.
‘We believe that Avima will be a great addition to our portfolio’, said Dr Karsten Wellner, CEO Ascendis Health. ‘Avima complements Ascendis Health’s existing portfolio of strong brands within the animal, plant and human health category whilst consolidating our position as a leading player in the plant health sector. The combined Avima and Efekto businesses will achieve synergies from a product, channel and backwards-integration perspective, as well as open previously un-navigated sales channels for both brands’.
Ascendis Health’s plant health segment, comprising Efekto Holdings and Avima, now represents approximately 40% of the Ascendis group earnings.
Business News Sector Tags:
Fax 2 Email
Study IT Online
Work from Home