With its Centrum and Caltrate brands and its billion-dollar Capsugel division, the drug company Pfizer commands a strong presence in the global dietary supplement market—and this presence is only going to strengthen through the company’s acquisition of the Danish supplement maker Ferrosan. Announced February 7, the deal represents yet another foray into the consumer health products market by a multinational drug company.
Based in Denmark, Ferrosan sells its Multi-tabs vitamins and minerals, Bifiform probiotics, Zinaxin JointCare and other dietary supplement products throughout Northern Europe, as well as in the Ukraine, Poland, Turkey and Russia.
“Ferrosan is an excellent strategic fit that strengthens ourpresence in dietary supplements with a new set of compelling brands and product pipeline,” said Paul Sturman, president of Pfizer Consumer Healthcare. “The transaction will mark an important step towards expanding Ferrosan’s brands through Pfizer’s global footprint. As an immediate result of this acquisition, we will gain greater distribution and scale for Pfizer’s well-known brands such as Centrum and Caltrate in Ferrosan’s regions.”
Since being purchased by the Danish private equity firm Altor Equity Partners in 2005, Ferrosan has doubled its EBITDA from 147 million Danish Kroner (€19.7m) to 302 million Danish Kroner (€40.5m), an average annual increase of 15 percent. “During the last six years, Ferrosan has accelerated growth and increased profitability by focusing on key brands in core markets, improved operational efficiency and reorganized governance structure,” said Fredrik Strömholm, joint managing partner at Altor Equity Partners.