For sale - Ratiopharm

Ratiopharm is up for sale.

The controlling Merckle family has agreed to divest the German generics and OTC company in return for a bridging loan for its investment vehicle, VEM Vermögensverwaltung.

The announcement came within hours of the news that Ratiopharm’s founder – the billionaire German businessman Adolf Merckle – had committed suicide after his business empire ran into financial difficulties. Merckle’s business interests also include the European pharmaceutical wholesaler and retailer Phoenix Pharmahandel.

Ratiopharm’s managing director Oliver Windholz stressed that the firm’s management team would do all it could to protect employees during the divestment process.

Windholz noted that both Ratiopharm’s domestic and international operations had “developed positively” during 2008. In 2007, Ratiopharm recorded €819 million of its €1.82 billion worldwide turnover in Germany.

Towards the end of last year, Windholz initiated a restructuring programme called ‘ONE Ratiopharm’ that was aimed at cutting costs and “achieving a more effective, globally-integrated organisation” (OTC bulletin, 28 November 2008, page 23). The first initiatives will come into effect during 2009.