Viveo makes two extra acquisitions and multiples please

“We see Neve as complementary to Viveo’s Cremer brand, adding production capacity and new product lines. In addition, the acquisition of Nutrifica will geographically expand the company’s sterile solutions operation, which began with the acquisition of Life and Famap earlier this year”, highlighted Itaú BBA. “The move is a step on the way for the company to become a one-stop-shop for healthcare for its customers.”

Such a branch consists of bringing as many products and services as possible to hospitals and other partners, becoming a strategic supplier for this customer base. The logic is that a hospital may even have more options for suppliers for a specific product, but it will hardly have another that solves its demand at once, regardless of location.

“Our mission is to simplify the healthcare market. To do this, we need to have the widest range of products and services possible. We want to be a one stop shop for our customers,” Flávia Carvalho, Viveo’s IR director, told Pipeline. “Our segment is very complex, hospitals buy 20,000 to 40,000 SKUs per month, so having a supplier with a very complete portfolio actually has an impact on the journey of these customers.”

Products from Neve: acquisition by Viveo generates consolidation — Photo: Reproduction

Neve has been working since 1986 in the development of hospital products. With four product lines manufactured at the plant in Bragança Paulista, in the interior of São Paulo, the company offers surgical and orthopedic materials, in addition to garments and a protective line for medical teams. Considerably smaller, and based in Brasília, Nutrifica specializes in nutrition (ie tube and IV), handling formulas for human consumption.

This is the fourth acquisition in the manipulated segment, in which Viveo did not operate until the beginning of this year. After the purchase of Life, Famap and Pró Infusion, between April and May 2022, and now with Nutrifica, the group is positioned as the biggest player in the manipulation segment in the entire Southern Hemisphere. It is a good example of how the company has tried to accelerate its presence in unexplored verticals to become a one stop shop.

Since January of last year, Viveo has already made 19 acquisitions. There were more than BRL 2 billion in investments, which added BRL 3 billion in revenue and BRL 290 million in Ebitda (highlighting Profarma Specialty, in medicines, with more than BRL 1.6 billion in revenue). In the latest guidance released, the company calculates that by 2024 the acquisitions should result in another R$ 110 million impact on Ebitda with the capture of synergies.

“After accelerating and delivering massive inorganic growth, the challenge is to integrate all these assets. Looking ahead, we signal that a more elongated balance sheet may end up further limiting, although not ruling out, other inorganic movements”, write the BTG analysts.

Source: Value Pipeline