News and Notifications - Monday, July 26, 2010 11:34 AM
Lyfjaţjónustan acquires distribution company Parlogis
The open sale process to divest Parlogis ehf., initiated on 10 May 2010, has concluded with the signing of a sale contract for all share capital in the company. The sellers are Vestia ehf. (80%) and Atorka Group hf. (20%); the buyer is Lyfjaþjónustan ehf. All shares in the company were sold for the purchase price of ISK 250 million, paid at the time of purchase. The sale contract is concluded subject to the approval of the Icelandic Competition Authority (Samkeppniseftirlitið).
Investors showed a great deal of interest in the company. A total of 12 investors received detailed information about Parlogis and 4 parties subsequently submitted indicative offers. These 4 parties were provided with access to a data room to perform due diligence prior to submitting binding offers. As already mentioned, the sale process concluded with the signing of a purchase contract with Lyfjaþjónustan.
Parlogis has a long history as one of the main distribution companies to the Icelandic health care sector with a market share of 30% in pharmaceuticals. The company's assets include a 4,000 square meter specially designed warehouse, up-to-date IT systems, highly developed work processes and expert staff. Parlogis' operations are fairly robust. Management and employees worked together to achieve good results during a difficult period which included severe blows delivered by the financial crises and depreciation of the Icelandic currency. The company's creditors, Landsbankinn and Atorka, responded to these blows by converting debt to equity, thereby renewing the company's operational basis. Sale of all shares in Parlogis is the last step in a process to successfully restructure and revive a sound company.
Steinthór Baldursson, Managing Director of Vestia, on the occasion: "Parlogis is the first company divested from Vestia's asset portfolio. Through the sale of Parlogis, Vestia has attained its main goals of maximising recovery in divesting assets, limiting its ownership period in so far as possible and ensuring non-discrimination and transparency during the sale process. Such positive results provide impetus for preparing divestiture of other assets in Vestia's portfolio. Kristján Jóhannsson, Chairman of the Board of Lyfjaþjónustan ehf., is "well satisfied with the purchase and looking forward to collaborating with the management and employees of Parlogis to formulate policy and further develop the company".
Landsbankinn's Corporate Finance department managed the sale process on behalf of the seller. Information about the sale process employed in divesting of Vestia's assets and information about holdings in other corporates is available on the company's website, www.vestia.is.
About Parlogis
The name Parlogis is derived from the phrase 'partner in logistics', which encompasses the company's purpose. Parlogis has a long history as one of the main distribution companies to the Icelandic health care sector. In addition to various value-added services, the basic distribution service offered by Parlogis fully complies with stringent quality demands made by domestic regulators and medicinal product producers. Parlogis has a market share of 30% in the distribution of pharmaceuticals. The company's assets include a 4,000 square meter specially designed warehouse, up-to-date IT systems, highly developed work processes and expert staff. Parlogis' employees number 55. Guðný R. Thorvarðardóttir is Managing Director of Parlogis.
About Lyfjaþjónustan
Lyfjaþjónustan has acquired all share capital in Parlogis. The owners of Lyfjaþjónustan belong to the group that owns Icepharma, a sales and marketing company of health-related products and sporting goods from international vendors. Parlogis will continue as an independent company, striving as before to provide current and new customers with the highest level of service.
About Vestia
Holding company Vestia is a subsidiary of Landsbankinn (NBI hf.). The role of the company is to manage and divest holdings in companies which the bank has acquired following restructuring whereby debt is converted into equity, as well as holdings under management for other reasons.
About Atorka Group hf.
Following composition with its creditors, Atorka's financial position is secure and the company well placed to maintain its assets in order to maximise return for creditors. Plastic producer Promens is by far Atorka's largest and most valuable asset. Atorka also holds shares in equities listed on foreign markets, including Interbulk Group PLC, Clyde Process Solutions, NWF and Asia Environment.
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