Management Buyout Completed for Katren, One of Russia's Largest Pharmaceutical Distributors
12 September 2005
The European Bank for Reconstruction and Development (EBRD)
represented by Berkeley Capital Partners has sold its 31.4% stake
in Novosibirsk-based Katren to its management team. Katren is one
of the largest and fastest growing pharmaceutical distributors in
Russia. Meridian Capital Management, a Moscow-based M&A and
corporate finance firm, advised the EBRD and Berkeley on the sale
of their stake in Katren and assisted with the management buyout
transaction.Dmitri Moiseyev, Berkeley Capital Partners’
Senior Portfolio Manager, declared “We are very satisfied
with this successful management buyout and the resulting sale of
our and the EBRD’s share in Katren. We are glad that the
partnership between Katren’s shareholder-managers and
Berkeley Capital Partners has led to the transformation of a
regional pharmaceutical distributor into the fifth largest national
distributor. We believe that Katren possesses all necessary
business elements to become one of the top three industry players.
The professional work of Katren’s outstanding management team
resulted in the creation of great value. We look forward to
continuing cooperation with Katren’s shareholders.”
Leonid Konobeyev, Katren’s General Director and shareholder,
stated:
“We are very satisfied with our cooperation with the EBRD and
Berkeley Capital Partners. This cooperation contributed much to the
increase of the rate of growth of the company, and to the creation
of subsidiaries and representative offices in all Federal regions
of the Russian Federation. During our years of cooperation, a
stable logistic network was formed and the unique information
technologies to secure the wholesale deliveries of drugs were
developed and implemented at Katren. Thanks to these, Katren
strengthened its position in the market. Its market share increased
by more than 200 percent and, according to results from 2004,
Katren now holds over 5% of the national market.
“Due to the fulfillment of the EBRD’s investment
program in Katren and its targets, Katren determined to repurchase
the EBRD’s 31.4% of its shares in order to pursue
opportunities with other potential industry investors. Currently, a
number of investors have shown interest in Katren and, though the
company does not strictly need to attract additional investments,
we will consider proposals in the long-term interests of
Katren.”
ABOUT KATREN
Katren is one of Russia’s leading national pharmaceutical
distributors, with 2004 net sales of USD 194 million. The Company
experienced growth rate of an average of 54% annually over the past
four years, and was the only national distributor in the Russian
pharmaceutical market to demonstrate such a high growth rate. At
present, Katren has 20 branches and 51 representative offices
throughout Russia. Katren delivers pharmaceuticals to over 95% of
Russia’s territory and operates in virtually every regional
market. Its product assortment includes over 10,500 pharmaceutical
products, of which about 8,000 are constantly available in
stock.
In 2000, the EBRD invested in Katren through BCP I, a fund managed
by Berkeley Capital Partners.
ABOUT EBRD
The EBRD is one of the earliest investors in modern Russia, both
through direct investment and the funding of regional investment
funds. Russia remains one of the main focal points of the EBRD's
investments. The EBRD's key objectives in Russia include the
reduction of Russia’s dependence on its natural resources;
strengthening the microeconomic foundations of the growth process;
improvement of business and corporate governance standards of
Russian companies; and modernisation of the infrastructure and
promotion of financial intermediation to the real economy.
The EBRD is the largest foreign investor in Russia, and it
mobilizes significant foreign direct investment beyond its own
financing. It is owned by 60 countries, the European Community, and
the European Investment Bank. Despite its public sector
shareholders, the EBRD invests mainly in private enterprises,
usually together with commercial partners. With a subscribed
capital totalling EUR 20 billion, the EBRD has a solid capital
base.
ABOUT BERKELEY CAPITAL PARTNERS
Berkeley Capital Partners is a private equity management company
with offices in London, Moscow and Novosibirsk. Berkeley Capital
Partners strives for partnerships with strong strategic teams of
shareholders-managers of medium-sized companies in order to
speed-up their growth. BCP I has already realized more than two
thirds of the investments it made in Russia during the recent years
and has trebled its invested capital. Headed by Dmitry Bosky, a
veteran of the private equity industry with over 20 years
experience, Berkeley Capital Partners is now planning its next
Fund.
ABOUT MERIDIAN CAPITAL
Meridian Capital is a Moscow based, independent investment banking
firm with capabilities and experience in a broad range of
investment and financial services including mergers and
acquisitions, private equity origination, corporate and project
exits, and asset divestment. Meridian Capital is a member of Global
M&A, the world’s leading network of successful middle
market corporate finance houses. Global M&A extends Meridian
Capital’s reach to M&A professionals in over 30
countries.
Contacts:
Charles W. Borden
+7 (095) 937-5933
charles.borden@meridiancapital.ru
Dmitri E. Moiseyev
+7 (095) 202-5559
+7 (095) 937-5684
dmitri_moiseyev@berkeley.ru
Leonid V. Konobeyev
+7 (383) 333-6701
konobeev@katren.ru
