Brazil’s Viveo announces two new acquisitions, totalling US$170 million

RIO DE JANEIRO, BRAZIL – Viveo, the country’s leading company in distributing disposable medical supplies and medicines, announced Monday (16) that it had reached an agreement to acquire Profarma Specialty and Cirúrgica Mafra for a total value of R$900 million (US$170 million). According to the company, both generate annual sales of approximately R$1.8 billion.

A couple of days ago, Viveo debuted on Brazilian stock exchange B3, with the ticker VVEO3, after completing its initial public offering (IPO) that generated R$2 billion (US$380 million).

The group is controlled by funds managed by DNA Capital, an investment firm in which the Bueno family own a majority stake. However, the Mafra family, who founded Mafra Hospitalar, has been the driving force and the real engine of the company’s meteoric rise over the years.

NEW ACQUISITIONS

Profarma Specialty, founded in 2014, operates in distribution, specialty pharmacy, and patient care. The company has five distribution centers throughout the country, and four specialty pharmacies focused on home delivery.

Cirúrgica Mafra has four stores and two distribution centers with more than 12,000 products in its range. It sells hospital supplies, specialty medicines, nutrition, orthopedic products, compression stockings, diapers for children and seniors, and dermo-cosmetics.

The company said that the closing of the transactions is subject to approval by Brazil’s antitrust regulatory agency CADE.

AMBITIONS

Viveo is the Brazilian market leader in distributing disposable medical supplies and pharmaceuticals, operating in the main channels (hospitals, clinics, and laboratories) and with a customer list that includes some of the largest companies in each of these segments.

It is a market that moves an estimated R$223 billion (US$42 billion) per year, according to the offer prospectus.

The ambitious plan is to build out the country’s largest healthcare ecosystem under a one-stop-shop model. Customers have access to various products, services, and smart management solutions in the same environment.

Growth will be guided by the addition of new product categories and technology services that can simplify and enhance the offering for customers, in this case, hospitals, labs, and clinics.

With the funds from the initial offering, the company plans to invest in accelerating growth and strengthening its market-leading position, both organically and through acquisitions.