Acquisitions give $ 9 billion to the major networks

When the American CVS pharmacies network announced in February the Brazilian purchase Onofre by 25 times the company's Ebitda, suddenly the level of 14 to 15 times Ebitda paid in recent operations in the sector in the country, jumped to this unprecedented level-more than double the rate paid by CVS in their latest operations in the world. Was the toll to be paid to enter the Brazilian market of drug stores-retail segment facing the faster pace of concentration.
Now, a survey done by Brasilpar, financial advisory services in mergers and acquisitions, details how this consolidation, involving increasingly expensive business, revenue in the sector and which networks stood out.
According to the study, the five major networks accounted for 29% of market revenues in 2012, of R $ 49,6 billion. The slice is equivalent to R $ 14.4 billion, calculated the Brasilpar, based on data from IMS Healthy. Five years ago, they accounted for 20% of sales, corresponding to R $ 5,28 billion. This sum includes associated networks and not associated with the Brazilian Association of Pharmacies and Drugstores (Abrafarma).
Therefore, between 2008 and 2012, RaiaDrogasil networks, DPSP (Drugstores Pacheco and São Paulo), pay less, Brazil Pharma and the Minas Gerais Aguilar totaled r $ 9.12 billion to its revenue, in the form of mergers and acquisitions and openings. Important to note that the organic expansion had weight in this revenue increase, but experts reinforce that mergers and acquisitions were more instrumental in this growth, pulled by store purchases made by Brazil Pharma and mergers of Drogasil Streak and DPSP.
This amount of $ 9.12 billion incorporated into the billing amounts to almost two RaiaDrogasil, the largest pharmacy retailer in the country with 906 points.
According to the study, the networks that are the fifth to tenth place in the ranking of Abrafarma account for 5% of the market. The remaining 66% (taking account also the 29% of the five largest) are pharmacies of medium and small sizes. Only small accounted for 47% of retailers in Brazil in 2012-around r $ 23,33 billion.
Five years ago, these smaller networks were most-corresponded to 52% of the market, according to Brasilpar. In 2009, the rate had fallen to 49%. Despite the shrinkage, the weight of this segment is still representative. The r $ 23,33 billion handily outperform the value sold by top ten drugstore chains of Brazil ($ 40 billion). "Who we look today are retailers with 20 to 200 stores and revenues of R $ 200 million to $ 1 billion per year," said Luiz Eduardo Costa, Managing Director of Brasilpar, a company that makes for consultants and companies seeking funds active in the market.
"In ten years, we will have a brutal change, with 30% of the market of independent stores and 70% of medium and large," says Henry Macdonald, partner at Brasilpar
By the calculations of the advice, the most breathtaking growth companies, based on sales per store indicator, between 2009 and 2012, were Brazil Pharma, Drogasil Streak, pay less drug stores, Pacheco and São Paulo (DPSP) and Araújo, in that order. The Aguilar, last placed, not acquired or merged with companies.