Montero prepares merger to double business

 “There is a possibility of acquisition as well as merger, but will most likely be a pure merger, with personality and name left intact,” the company official told Business Standard.

Montero is set to have €100 million worth of business this year, after taking over distribution company Tamisa Trading this spring. In addition to double turnover brought about by the merger, Hadadea estimates 30 percent organic growth of the company’s business in 2008.

Although the company official did not disclose the name of the two distributors Montero is negotiating with, the companies that could double Montero’s business are Fildas, Relad, Farmexpert and ADM Farm (which already announced negotiations for a possible merger or sale of shares).

Such a strategic alliance could threaten A&D Pharma’s leadership on the drug retail and distribution market. A&D Pharma owns Mediplus, the largest drug distributor in Romania, as well as the retail network Sensiblu.

Furthermore, Montero is also considering a potential listing on the stock exchange, but no sooner than 2009. Hadadea excludes listing Montero on the Bucharest Stock Exchange, and the most probable choice is London. The company official refused to disclose the necessary amount for Montero’s sustained development.

Montero is among the top ten distributors on the Romanian market, ranking 9th on the retail market (sales to pharmacies) and 19th on the market for sales to hospitals. Montero Group has a five percent market share, while Mediplus has 20 percent.

“There is a possibility of acquisition as well as merger, but will most likely be a pure merger, with personality and name left intact Flavius Hadadea General Manager, Montero