Genomma Lab expands portfolio with key brand acquisitions in US and Argentina

Genomma Lab Internacional S.A.B. de C.V. (BMV: LABB), a leading pharmaceutical and personal care product company based in Mexico, has announced a series of strategic acquisitions aimed at bolstering its core brand portfolios. The company has acquired four independent brands in key categories, significantly enhancing its presence in the isotonic beverage, analgesic, and gastro categories. This move aligns with Genomma Lab’s strategy to strengthen its market position and expand its international footprint.

Strategic Acquisitions to Boost Market Presence

Genomma Lab’s U.S. subsidiary, Genomma Lab USA Inc., has completed the acquisition of the Suero Repone and Suero Oral brands through two separate transactions. This strategic move not only broadens the company’s distribution network but also solidifies the Suerox brand’s presence in the U.S. market. Notably, the acquisition includes the “suero” concept, a significant asset in the U.S. Hispanic market.

In Argentina, Genomma Lab Argentina S.A. has acquired the IBU 400 and Treg brands. This acquisition allows Genomma Lab to enter the ibuprofen segment, which is the second-largest analgesics category, thus strengthening its position in the analgesics market. Additionally, the Treg brand, a leader in the gastro category, particularly in Omeprazol, complements Genomma Lab’s existing portfolio.

Expansion Through Acquisition

Marco Sparvieri, CEO of Genomma Lab Internacional S.A.B. de C.V., highlighted the importance of these acquisitions. According to Sparvieri, the brands acquired have strong market recognition and extensive distribution networks. These new additions will enhance Genomma Lab’s capabilities in marketing and distribution, further solidifying its presence in the isotonic beverage, analgesics, and gastro categories.

Antonio Zamora Galland, CFO of Genomma Lab, detailed the financial aspects of the acquisitions. The total investment amounted to USD 25.6 million, aimed at acquiring brands that recorded USD 21.7 million in trailing twelve-month sales. This investment was strategically funded through a combination of Argentina-domiciled cash and local debt, demonstrating a savvy use of financial resources.

Genomma Lab’s Growth Strategy

Genomma Lab Internacional S.A.B. de C.V. is renowned for its extensive range of premium branded products, which are leaders in their respective categories. The company’s success is attributed to its effective new product development process, consumer-oriented marketing strategies, broad retail distribution network, and a flexible, low-cost operating model. The recent acquisitions are expected to further bolster Genomma Lab’s competitive edge and market share.

The acquisition of well-established brands with significant market presence enhances Genomma Lab’s portfolio in key sectors. The company’s ability to leverage these brands’ existing distribution networks and consumer recognition will likely drive significant growth and solidify its position as a market leader.”