In 2001, SEAF, through its SEAF Croatia and Central and Eastern Europe Growth funds, made an equity investment in Medifarm, acquiring 40% of the company. Medifarm is a leading Croatian drug and pharmaceutical products distributor, whose distribution and wholesale include domestically and internationally manufactured medicines, vaccines, lab reagent and test kits, bandages, disinfectants, insecticides and cosmetics. Medifarm’s customers include hospitals, pharmacies, and wholesalers.
Entering the International Market
With the capital from SEAF, Medifarm was able to expand geographically, acquire new customers, increase sales through aggressive pricing, improve service and quality through increased daily deliveries and a new online ordering system, and sell on the international market. Within the first two years after SEAF’s investment, Medifarm’s annual revenue grew by 50 percent. In 2002, using the financing from SEAF, Medifarm launched a subsidiary company in Serbia, one of the primary markets in which the firm was interested. “I am delighted with the financial and advisory assistance that the SEAF funds have provided to Medifarm,” Managing Director of Medifarm and majority shareholder Stjepan Talan said in an interview.
A Completed Exit
Three years after investment, SEAF assisted in the sale of 100% of the shares of Medifarm to a subsidiary of PHOENIX Pharmahandel AG & Co KG, a privately owned German company that has a leading market position in the European pharmaceutical wholesale business and was number two in the industry.