Master Pharm, a contract manufacturer of dietary supplements, decided to change its strategy. One of the actions is the sale of 100% of shares in the subsidiary Avet Pharma. There were also personnel changes in the company’s management board.
Master Pharm sold Avet Pharma
The change of the implemented strategy assumes Master Pharm’s focus on contract production of dietary supplements. This business line has been identified as the most promising. The Company is withdrawing from the distribution of dietary supplements under own brands. Therefore, Master Pharm has decided to sell 100% of shares in its subsidiary Avet Pharma to a civilian person. The sale price is PLN 1,000. According to Master Pharm, however, this reflects the value of Avet Pharma, and such a low price results, among others, from the company’s debt.
The next step is to purchase Master Pharm’s private label portfolio from Avet Pharma. Later, both companies will sign a distribution agreement under which Avet Pharma will be a distributor of Master Pharm products. The company’s Management Board hopes that this transaction will enable the elimination of the negative impact of the existing private label distribution model on the group’s results.
Resignations of Management Board members
At the same time Master Pharm informed about changes in the company’s management board. They had immediate effect, i.e. as of 20 December. Rafal Biskup, President of the Management Board of Avet Pharma and a member of the Management Board of Master Pharm resigned. Tomasz Grzesiek and Marek Golaszczyk are no longer members of the company’s Supervisory Board.