Montero has two expansion options: acquisition or merger

Drug distributor Montero, one of the top ten players on the drug distribution market, is considering taking out a 20 million-euro loan in order to finance the acquisition of a rival company. “Currently, we are considering two options when it comes to our expansion in Romania: an acquisition or merger with another player in the field. I think right now a merger would be the more profitable option, because of our previous experience with Tamisa (i.e. Tamisa Trading – a company that Montero merged with this year),” said Flavius Hadadea, general manager of Montero. He says the acquisition of another player could enable turnover to double to 200 million euros next year, given that Montero budgeted revenues worth 100 million euros. Both the acquisition and the merger could involve players of Montero’s size. The distributor is currently examining two companies, one for an acquisition and one for a merger.