Zur Rose Group strengthens its internationalization strategy
Acquisition of the Spanish marketplace platform Promofarma
- Zur Rose Group pursuing its internationalization by acquiring the leading marketplace in Spain for consumer health, beauty and personal care products commonly sold in pharmacies
- Building tech expertise enhanced by next level technology
- Significant move to strengthen European leadership
- Managed marketplace platform business model to efficiently launch in new markets and to complement eTailer operations in Zur Rose's existing markets
The Zur Rose Group is pursuing the internationalization of its business by acquiring the leading managed e-commerce marketplace for consumer health, beauty and personal care products commonly sold in pharmacies in Spain. With this acquisition, the Zur Rose Group is also building up tech capabilities in Barcelona, one of Europe's top five tech and innovation hubs. Promofarma brings the leading market position in Spain and a springboard for international expansion, both cross-border and country-by-country, with a capital-efficient business model.
Founded in 2012, Promofarma has built and operates a managed e-commerce marketplace that connects consumers to health, beauty and personal care vendors, most of them pharmacies. The business has more than 50,000 consumer health products listed on its platform and sells products from more than 3,500 brands which are sourced and shipped by more than 500 partners, mainly pharmacies, but also pharmaceutical companies and health stores. In 2017, the fast-growing company generated turnover amounting to around 19 million euros, a 50 percent increase from 2016. The strong growth will continue in 2018. The overall market for this largely unregulated goods segment is worth some 8 billion euros in Spain and 100 billion euros at European level. During 2018, the Spanish company has started its international expansion and already serves 20 countries across Europe with its cross-border e-commerce business. David Masó and Adrià Carulla, the founders of Promofarma, say: "We created Promofarma as a platform and technology company to build the best online shopping experience when buying health-related products at European level, and to enable independent pharmacies, trusted sellers and brands to sell online to the new digital shopper in a profitable way. By combining our managed platform with the Zur Rose Group, we strive for becoming the leading European player as an e-commerce marketplace."
With the acquisition of Promofarma, the Zur Rose Group is pushing ahead with its own digital transformation and diversification of its business. By entering the Spanish market, the Group is further extending its leading market position in Europe and paving the way for future growth. Zur Rose Group CEO Walter Oberhänsli says: "The Zur Rose Group is not just acquiring the Spanish online leader in the consumer health category, but also a platform technology that will enable us to pursue our international expansion and to roll out a new business model by partnering with pharmacies and health stores across Europe."
Completion is expected around mid-September 2018. It has been agreed not to disclose any financial aspects of the transaction.
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Promofarma has built and operates a unique vertical managed marketplace model of selected pharmacies, with the potential for international expansion. It provides tens of thousands of mid- and high-end consumer health products in one single place, at a competitive price and with next day delivery service, but neither holding inventory, nor operating warehouses.
Thanks to the use of the latest technologies, Promofarma gives conventional on-site pharmacies rapid access to e-commerce at low investment cost. As a managed marketplace, Promofarma handles all the necessary digital tasks. These include, e.g. the webshop, online marketing and payment processing with the final customers. Customers order their products via the Promofarma webshop, and the platform automatically assigns the customer's order to a partner pharmacy. This combination gives the final customer the benefit of genuine added value - access to the largest product offering at attractive prices.
With its platform developed in-house, Promofarma sets new standards in the pharmacy market. The heart of the state-of-the-art platform solution for on-site pharmacies is a microservice-based IT architecture with the ability to run any number of processes simultaneously. This permits a high degree of flexibility and a faster time-to-market for further products and digital services using standardized interfaces.
About the Zur Rose Group
Operating under the Zur Rose and DocMorris brands, the Swiss-based Zur Rose Group is Europe's leading online pharmacy and one of Switzerland's foremost wholesale suppliers to medical doctors. Through its business model, it helps to ensure safe, reliable and high-quality pharmaceutical care, while also excelling in developing innovative medicines management services to increase the effectiveness of the medication process. This creation of added value, the strong focus on patients and the commitment to supply medication at low cost for the benefit of payors and patients make the Group an important strategic partner for all healthcare stakeholders.
The Zur Rose Group is headquartered in Frauenfeld, from where it also serves the Swiss market. Customers in Germany and Austria are primarily supplied from Heerlen (NL). Furthermore, the Group holds a majority interest in BlueCare in Winterthur, the leading provider of networking systems in the Swiss healthcare market. Employing more than 1000 people at its various locations, Zur Rose Group generated revenue of CHF 983 million (resp. EUR 881 million or USD 1,009 million) in 2017.
Zur Rose Group AG's shares (Swiss security no. 4261528, ISIN CH0042615283, ticker symbol ROSE) are traded on SIX Swiss Exchange. The corporate bond issued in July 2018 is listed on the SIX Swiss Exchange (Swiss security no. 42146044, ISIN CH0421460442, ticker symbol ZR018). More information at zurrosegroup.com.