Sale of Estonian pharmacy operations of Yliopiston Apteekki to Euroapteek OÜ
Euroapteek OÜ, subsidiary of Euroapotheca Group, signed an agreement to acquire Finland based pharmacy group Yliopiston Apteekki’s pharmacy operations in Estonia in January 2018. The operations included 22 pharmacies in Estonia generating total revenue of c. 22 M€.
Founded in 1755, Yliopiston Apteekki currently operates in Finland and Russia, operating a pharmacy chain as well as an online shop. According to the former CEO of Yliopiston Apteekki Group, Jukka Niemi, the reason for the sale was that the group’s market share in Estonia was not optimal for the future. Meanwhile, as part of Euroapotheca Group, the chain would more than double its size in Estonia and have excellent possibilities to operate effectively and to provide better customer service in the future. The deal follows Euroapotheca Group’s strategy for growth in the Nordics as well as Central and Eastern European markets through acquisitions and organic growth. The group had acquired more than 150 pharmacies from the Swedish Apoteksgruppen in November 2017.
Our main value creation components were:
- Advising Yliopiston Apteekki throughout the sale process
- Facilitation of competitive bidding process
- Commercial negotiations
Following the transaction, Euroapteek bought and integrated 13 pharmacies, formerly owned by Yliopiston Apteekki’s Estonian subsidiary, and continued to provide franchise services to 11 pharmacies that operate under the Ülikooli Apteek brand name. After the transaction, all Ülikooli Apteek pharmacies at first continued to operate under the existing brand, and all pharmacy staff remained in their existing roles.
Euroapteek OÜ is an Estonian pharmacy chain that operated 73 pharmacies after the transaction, some owned by the company and some operating under franchise agreements. Euroapteek is part of Euroapotheca Group, an international group that manages pharmacy retail chains and wholesale companies in Lithuania, Latvia, Estonia, Poland and Ukraine. At the time of the transaction, the group owned a total of more than 450 pharmacies.