23
Wed, Oct
56 New Articles

Sorainen and Cobalt Advise on Sale of Oriola's Baltic Businesses

Sorainen and Cobalt Advise on Sale of Oriola's Baltic Businesses

Deals and Cases
Typography

Sorainen advised Finland-based Oriola on the sale of its Baltic business to Oribalt Group, controlled by the former management of Oriola's Baltic subsidiaries. Cobalt advised the buyers on the deal. Financial details were not disclosed.

According to Sorainen, "Oriola, a Finnish-listed retail and wholesale distributor of pharmaceuticals and health and wellbeing products, has a strong position in the pharmaceuticals market in Sweden and Finland. Net sales of the Baltic businesses in 2016 amounted to EUR 54 million, adjusted EBIT EUR 1.2 million, with personnel numbering 160." Oriola’s Baltic businesses includes the Oriola and Oriola Estonia subsidiaries in Estonia, Oriola Riga and Panpharmacy in Latvia, and Oriola Vilnius in Lithuania.

Kimmo Virtanen, Oriola´s Executive Vice President, explained: “We want to focus on developing our business in Finland and Sweden, where we see great potential and have initiated extensive development projects. In line with our strategy, we decided to sell the Baltic businesses to the companies’ existing management.”

"We are very happy with this acquisition," stated Pekka Ruokanen, Oribalt Group SIA Director. "Our acquiring group has several years of experience in leading the Baltic businesses, and we are excited to continue developing them further as owners. The high quality of services and long-term business development are our top priorities also in the future."

According to Sorainen, the firm, "as lead counsel on the sell-side, structured the deal and prepared transaction documentation, including a framework share purchase agreement encompassing full divestment of shares in five target companies established in three different countries. Among other issues, the transaction included a highly complex acquisition financing structure." The firm's pan-Baltic project team was led by Partner Sergej Butov and included Senior Associates Janis Bite, Jonas Kiauleikis, and Piret Lappert, and Associates Alina Kalvisa, Kai Vainola, Toms Vilnis, and others.

According to Cobalt, the firm "advised the clients in all stages of the transaction, including in negotiations of the sale and purchase agreement, as well as loan and security documentation related to the financing of the acquisition." The Cobalt team was led in Latvia by Specialist Counsel Edgars Lodzins and Managing Partner Lauris Liepa with assistance of Senior Associates Inga Tenisa and Elina Locmele and Associates Marija Berdova and Krisjanis Buss. In Estonia the team was led by Partner Marina Tolmatshova, assisted by Associate Christine Magi. The firm's Lithuanian team was led by Partner Akvile Bosaite with the assistance of Associates Aurelija Balciune and Mantas Juska.

Our Latest Issue