Ferrosan has entered into an agreement to acquire 92.5% of the shares in NSG in Vesterålen in northern Norway. The acquisition of NSG gives Ferrosan both a new product and access to a new business model with direct customer sales via subscription
In line with the ambitions expressed at the time of Altor and Idosan's investment in Ferrosan in February, the health care and pharmaceutical company Ferrosan is now expanding its activities with the acquisition of the Norwegian company Nordic Sales Group AS (NSG). NSG is domiciled in Sortland in Vesterålen in northern Norway. Ferrosan will thus be involved in a new business segment, subscription sales of food supplements.
NSG's major product is Omega-3 fish oil capsules, which are sold directly to more than 200,000 subscribers in Norway, Sweden and Finland. The company was founded in 1997 and has quickly built up a flexible, clearly focused and efficient business model. Since 2001 sales have increased by more than 50% yearly, and NSG has an annual turnover of approximately NOK 200 million.
Access to a new market
"Ferrosan is acquiring an exciting and profitable company which can also provide us with new experience on a number of fronts," states CEO Niels de Coninck-Smith, Ferrosan.
"NSG's business is built on direct sales to consumers, on the basis of finely tuned marketing supported by an advanced and efficient IT system. The model has proved itself highly effective in Norway, Sweden and Finland. We will further expand its success together with NSG's competent staff headed by CEO Svein Erik Nicolaysen.
With the acquisition of NSG Ferrosan will gain access to the Omega-3 market. NSG has made "Fri Flyt" one of the biggest brands in fish oil capsules on the Fenno-Scandinavian market. As a manufacturer of useful food supplements Ferrosan has a natural interest in fish oil, which has a number of beneficial effects on health. NSG will give us a strong platform in three countries.
As the new owner of NSG we can contribute towards continued favourable developments, for example by providing them with our knowledge of product concepts. The acquisition of NSG is thus a natural element in Ferrosan's strategy, which aims at our becoming a leading company in our field by taking part in the Nordic and European consolidation," explains Niels de Coninck-Smith.
Ferrosan has entered into an agreement to acquire 92.5% of the shares in NSG and will submit a bid to the remaining shareholders in NSG. The take-over of NSG is dependent on the clarification of a number of terms and conditions. This clarification is expected to be finalised before the end of September.
Ferrosan is an international health care and pharmaceutical company with activities operating in two business segments: Supplements and Lifestyle Products, and Medical Devices. Ferrosan is represented in more than 70 countries and employs about 600 staff. Some 90% of Ferrosan's DKK 835 million in annual sales (2004) are generated outside Denmark. Ferrosan's income before tax was DKK 94 million in 2004.
It is Ferrosan's overall goal that our products are the preferred choice of customers on selected markets within the company's two business segments. The strategy for Supplements and Lifestyle Products is to achieve market-leading positions based on unceasing product innovation. Ferrosan's products must be creative, innovative, recognised and promote health and well-being. In the continued development of the company's most important brands such as Imedeen®, Multi-tabs®, Zinaxin® and Idoform®, Ferrosan sets a high priority on growth, innovation and consumers' confidence in our products.
Within the segment Medical Devices Ferrosan develops, produces and sells effective and well-documented surgical aids. The most important brands are Spongostan® and Surgifoam®.
Ferrosan is owned by the Nordic investment fund Altor 2003, Idosan A/S and the company's management.