Borgo Virgilio, 1st August 2016
Gabbiano strengthens its position in the market with the acquisition of FarmaMed health and personal care products of the Angelini Group.
Gabbiano, a leading company in the field of no-food items for the organized and specialized mass market retail trade, has signed a contract to acquire the FarmaMed branded health and personal care products and the right to use the Amuchina brand from the Angelini Group of Ancona.
The agreement provides for the purchase of FarmaMed products (bandages, gauze, plasters and many other first aid products) sold mainly in the mass market retail trade. The business boasts around 10 million euros in turnover and a market share of over 40% realized in 6,800 points of sale.
Thanks to this acquisition, Gabbiano pursues several objectives such as:
- The leadership in the health and personal care market with over 40% market share
- The synergetic strengthening of the FarmaMed and FarmaSan brands
- The relaunch of the category thanks to considerable investments in advertising
- Use of the brand also in the reading glass market where Gabbiano is already leader with over 55% market share
Andrea Dodi, General Director of Gabbiano, states:
“Sometimes things happen when you least expect them. Many times you race to the finish line and by a few centimeters you are unable to grab it and make it yours. Now we can say that the result has arrived. After two years of starting and interrupting negotiations, we are able to stabilize something that was considered a truly impossible dream to achieve.
We have many ideas to relaunch this category and we will soon be presenting new products and new consumer solutions to the market as well as significant investments in communication.”
To improve our skills we have initiated a collaboration with the University of Bologna and acquired some patents that will revolutionize the use of many products considered today as trivial.
From the employment point of view we do not foresee significant changes in the current workforce, while we will have to implement the sales organization, especially in some areas where the impact of volumes will be more significant. On the other hand we are talking about a 25% increase of the current volumes.
Acquisition is fundamental for growth, to strengthen the company’s presence in large retail outlets, as well as to improve competitive ability. The goal we set ourselves is not simply to achieve leadership in this market segment, but we want to redesign the category by proposing new products that are able to meet new consumption and new needs by exploiting research and university patents.
In addition to all this, FarmaMed brand will be applied to the reading glasses market where we are already a reference point.
We must not underestimate that today FarmaMed is distributed in 6,800 points of sale, of which 2,400 are not currently Gabbiano customers and will be added to the current 10,500.
The moment we are experiencing is not among the simplest and our sector is certainly not immune to drastic changes in consumption and consequent company bankruptcies. Our task is to battle day in, day out, to create a future for our company and for those who work there.”