Banca IFIS announces that binding agreements have been signed with Federfarma, UniCredit and BNL – BNP Paribas Group for the acquisition of a controlling stake in Credifarma.
Credifarma is currently 67,5% controlled by the unified national federation of Italian pharmacy owners (Federfarma), with equal minority shares of UniCredit and BNL - BNP Paribas Group for the remaining 32,5%. The company mainly carries out short-term financing activities for private pharmacies through advances on Summary Accounting Notes (DCR, i.e. receivables from pharmacies from the National Health Service). Also through a simultaneous capital increase, at the end of the operation Credifarma will be 70% owned by Banca IFIS and 30% by Federfarma.
The operation also envisages a multi-year strategic partnership with Federfarma in order to promote the role of Credifarma in favor of Federfarma associates and the national pharmacy market.
“The objective of the acquisition of a controlling stake in Credifarma, applied to the expertise we have developed in the sector, is to become the leader in finance specialized in pharmacies in Italy” commented Giovanni Bossi, Banca IFIS CEO. "Thanks to the strong integration and significant synergies with the already consolidated Pharmacy division of the Group, Credifarma will be able to become the point of reference for financial support, the development and use of digital tools at the service of the Italian pharmaceutical sector".
Strategic guidelines - The strategic guidelines envisaged for Credifarma - the acquisition of which will be financed entirely thanks to the substantial liquidity available to Banca IFIS - envisage:
• expansion of the product base with new solutions for the pharmacy with the aim of satisfying the
customers in all the different phases of activity (from loans for acquisitions to supply payables);
• maintenance of the Credifarma workforce (about 40 employees);
• offer on the e-money market to meet the needs of the pharmacist payment system (POS, advanced ATMs, etc.);
• maximum organizational and process integration;
• extension of the investments undertaken by Banca IFIS in digital transformation to Credifarma's production processes, expanding the range of services, simplifying processes, making costs more efficient and reducing response times.
Phases – The operation, which will bring Credifarma into the perimeter of the Banca IFIS Group, is subject to authorization by the Bank of Italy and should be completed during the summer. The following phases are envisaged to be performed simultaneously:
1) Acquisition of all the shares held by Unicredit and by BNL – BNP Paribas Group, equal overall to 32,5% of the share capital of Credifarma;
2) Acquisition of a part of the current stake held by Federfarma for 21,5% of the capital;
3) Capital increase reserved for Banca IFIS aimed at providing Credifarma with a solid capital base for regulatory purposes and for future development plans.
At the end of the transaction, Banca IFIS will hold approximately 70% of the share capital of Credifarma. The acquisition of the investment by Banca IFIS is made at values slightly lower than the shareholders' equity. Banca IFIS's total investment for the acquisition, including the capital increase, is approximately 10 million euro. The institute will make available all its skills – already present in the Group's Pharmacy division – to enhance the business and for optimal management of the relationship with customer pharmacies.
At the end of 2016, Credifarma recorded an intermediation margin of 6,6 million euro and recently announced the preliminary final data for 2017, which record a significant growth in the commission components and operating income, with results above the target levels (the gross operating result amounted to 0,87 million against 0,5 million in the previous year). EBITDA (gross operating margin) rose to 1,1 million, +12% compared to the previous year, while the ratio between net non-performing loans and net loans halved, falling from 0,8% in 2016 to 0,4% . Finally, the Cet 1 also improved and, according to estimates, went from 11,2% in 2016 to 15,2% in 2017.
