Ascendis
Health (Pty) Limited,
the health and care products company, today announced the acquisition of Solal
Technolgies (Solal) and the investment into a majority stake in Marltons for
approximately R 300 million. Ascendis simultaneously raised R 850 million
of capital, with a R500m ‘bridge to bond’ loan from Standard Bank and Sanlam,
to consolidate its debt into a single facility and a further R 350 million
equity from Ascendis’ shareholders.
Ascendis
has 4 divisions being Phyto-Vet, Consumer Brands, Pharma and Medical Devices.
These
two acquisitions are the latest in Ascendis’ focussed growth strategy and
brings the total investment in the last 18 months to around R1 billion. The
Company has signed a large Pharma deal closing next month ahead of a planned
listing on the Main Board of the JSE in late 2013. With these acquisitions the
company will employ close to 800 people with annual sales of around R1.5
billion. Ascendis has also begun the process to list a corporate
bond by the end of this year to replace the R500 million bridge loan facility,
and already has Sanlam as its anchor bond investor with R75 million in the
current bridge loan which rolls into the bond.
Solal
will form the core of Ascendis’ consumer brand division and is the leading SA
health player specialising in preventive and anti-aging medicine,
using nutraceuticals, hormones, and functional foods. The company is recognised for its
innovative and premium products and its strong positioning in the preventative
and consumer health market. Solal also has an Integrated Medical Centre
(IMC) division that offers anti-aging and regenerative medical
consultations, specialising in the early detection and reversal of aging
processes in the human body. Ascendis is very excited about the synergies
with its other brand’s especially Nimue Skin and about the planned roll out of
further IMCs.
Marion
Burgess has also joined as MD of Ascendis’ Consumer Health Brands division. She
brings a wealth of experience having a BSc in Dietetics, an MBA and years of
experience in the consumer and heath care industry. Solal has grown
significantly since its launch 14 years ago and its products can be found in
most retailers, pharmacies, health stores as well as many medical practitioners
and professionals. “The acquisition by Ascendis will open up a lot of new
opportunities for Solal: from a backwards integration point of view and even
taking this great local brand into international health markets,” says Brent
Murphy a pharmacist and key partner in the Solal business, “We will strive to
remain leaders in the industry and continuously work with scientists, customers
and regulatory authorities to make this great brand even better ".
Marltons
provides a key addition to Efekto and Avima in Ascendis’ Phyto-Vet division. Owned by the present management for 25 years, Marltons is the leading
pet health and accessories company in Southern Africa. The acquisition of Marltons is
subject to the approval by the Competition Commission, which is expected by the
end of July 2013.
“Marltons
has a strong distribution network in chain retail, pet and vet shops in South
Africa. Ascendis’ plant and animal (Phyto-Vet) division currently focuses
mainly on plant care with the Efekto and Avima brands. Marltons also is a major
supplier to about 2000 of Efekto’s 4000 customer doors nationally, offering
significant synergy opportunities” says Dr. Karsten Wellner, CEO of Ascendis
Health. In order to address and extract this synergy Ascendis recently hired
Jayen Pather to head the Phyto-Vet division. With his background in supply
chain and consumer products he will provide a strong focus on brands and their
channels to market.
The
key Executive Managers and Shareholders of both Marltons and Solal will join
the Ascendis team in line with Ascendis’ emulation of Warren Buffet’s strategy
to keep great management as partners after investing into their brands and
companies.
[END RELEASE]
Notes to editors:
About Ascendis Health
Ascendis
Health is a health and care company that acquires and develops strong brands in
plant, animal and human health. Its annualised turnover is more than R1.5
billion. Ascendis Health has a staff complement of more than 500 employees and
is headed by Dr Karsten Wellner (CEO). Karsten and his executive team (CFO:
Robbie Taylor, COO: Richard Crouse) have extensive experience in
entrepreneurial and listed environments as well as with pharmaceutical,
consumer health and care products.
