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"Olainfarm" buys 47.5% stake in "Silvanols"

Valeri Maligin, the head of "Olainfarm". Photo: LETA.
RIGA, May 2 - Joint-stock pharmaceutical company "Olainfarm" has bought 47.5 percent of shares in another Latvian joint-stock pharmaceutical company "Silvanols", according to "Olainfarm" announcement submitted to the "NASDAQ OMX Riga" stock exchange.

It is expected that another 20 percent or more "Silvanols" shares will be acquired by "Olainfarm" in the nearest future. This acquisition will allow both companies to expand their product groups and portfolio and enter and expand into new markets, "Olainfarm" informs.

"Over last several years "Olainfarm" has made significant investments in expansion of its product portfolio, sales markets and business segments. Acquisition of "Silvanols" is yet another step towards vision of "Olainfarm" to become a leading producer of finished dosage forms and chemical products in the Baltics, whose products are well known and available throughout the world. We see a good opportunity to increase the speed of growth by merging expertise, experience and export potential of the two companies and by creating and developing joint projects," says Salvis Lapins, a member of the "Olainfarm" board.

"Silvanols" co-owner and board member Ieva Leimane said: "This is a logical next step in company's development. Having a new shareholder in "Silvanols" will help the company to develop faster, improve its logistical systems, and, what is particularly important, will provide new export markets for the company. I am sure and our recent experience confirms it, that our products are very competitive not only in Latvia but also abroad."

"Silvanols" CEO Viesturs Gurtlavs emphasizes that "changes that have occurred to list of company's shareholders will facilitate inflow of new knowledge and experience into "Silvanols" which will be yet another boost for competitiveness of the company internationally and domestically."

After the transaction, Lapins has also become a member of "Silvanols" board.

Sales of "Silvanols" in 2012 totaled LVL 1.993 million and the company made a net profit of LVL 136,000.

Consolidated profit and loss statement of "Olainfarm" for 2012 shows that the concern has set yet another profit record as it has made a net profit of LVL 9.75 million. This represents an increase by 41 percent compared to 2011, when profit of "Olainfarm" was LVL 6.91 million.

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