Today, on May 12, 2016, Valerijs Maligins, Chairman of the Board of JSC Olainfarm and Ludmila Cecotkina and Irina Vinvalka, co-owners of Tonus Elast Ltd., signed an agreement whereby Olainfarm acquired 100% shares in the above producer of elastic medical products. Value of the transaction was 14 million euros, and during the few coming days it will be registered in Latvian Company Register. Dace Mihnenoka, Chairwoman of Board of Tonus Elast Ltd. will keep her position.
“We know Tonus Elast very well since 2010, when we were representing them in Ukraine. We appreciated high quality of their products and witnessed considerable demand. It was then when we saw that the company has significant exporting potential to other markets as well and identified it as an acquisition target. Tonus Elast, similarly to Olainfarm has demonstrated significant development over the last several years and we think that with our marketing and expansion experience we can even better utilize potential that Tonus Elast has. And last, but definitely not least, products of Tonus Elast will fit extremely well in pharmacies of Latvijas aptieka chain,” says Valerijs Maligins, Chairman of Olainfarm’s Board.
Ludmila Cecotkina, co-owner of Tonus Elast Ltd. emphasizes: “There was quite a significant interest to acquire Tonus Elast: it was being looked at by companies from Russia, Poland, Germany and Latvia. We are happy that we agreed with Olainfarm, because the company my husband created more than 20 years ago and cherished all this time will be preserved and its development will continue here in Latvia. Olainfarm has proven its ability to successfully develop its daughter companies. We hope, that Tonus Elast, being the youngest of daughters will grow fast and will be even more known to the world than now “.
“By joining the group of Olainfarm Tonus Elast obtains new possibilities for development. That means not only investments, but also experienced colleagues to cooperate with at entering new markets and developing new products and also the feeling of being a part of the Baltic pharmaceutical leadership. More details about the new products that we are working on will be available closer to the end of the year. What I can tell you right now for sure is that we are expecting significant sales growth to Russia and Ukraine in a very near future,” says Dace Mihnenoka, Chairwoman of the Board of Tonus Elast Ltd..
Tonus Elast Ltd. was established in 1995 and is producing elastic medical products from elastic bandages to very complicated corset structures for pregnant and lactating women. Production site of Tonus Elast Ltd. meets all the standards of a modern producer of medical products, which is proven by LVS EN ISO 9001:2009 certificate.
Product portfolio of Tonus Elast Ltd. includes more than 100 different types of products. Best sold of them are bandages and compression products. On average about 11.2 million units per year are produced on production site of Tonus Elast Ltd. in Nica County. About 11% are sold locally in Latvia, while 89% are being exported. The main markets are CIS countries, EU, India and the Middle East. In Latvia, products of Tonus Elast Ltd. are available from company stores in Riga, Liepaja, Daugavpils and Ventspils, as well as in several pharmacies and internet shopping sites.
Tonus Elast Ltd. employs a little more than 200 people, which makes this company the biggest taxpayer and employer in Nica County. According to unaudited reports, in 2015 sales of Tonus Elast Ltd. were 7.3 million euros, while net profit reached 1.7 million euros.
Group of Olainfarm consists from its parent company JSC Olainfarm, pharmacy chain Latvijas aptieka Ltd. and Kiwi Cosmetics Ltd., producer of eco cosmetics. JSC Olainfarm also owns 96.69% shares in Silvanols Ltd., the leading Latvian producer of food supplements.
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 40 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Information prepared by:
Member of the Management Board
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