SSP concludes Neuraxpharm acquisition of Swiss-based S.T.U. GmbH - CBD brand Hemplix™

Langenfeld, Germany, 4. January 2020

Neuraxpharm Group (Neuraxpharm), a leading European specialty pharmaceutical company focused on the central nervous system (CNS), announced the acquisition of S.T.U. GmbH (Swiss Trade Union or S.T.U.), a leading Switzerland-based developer and distributor of natural cannabidiol (CBD) consumer products. The deal enables Neuraxpharm to enter the fast-growing CBD space and to build on its business of CNS-related products, including value-added medicines, standard generics and consumer healthcare products.

The acquisition is in line with Neuraxpharm's strategy to expand its presence in Europe entering a key market. Switzerland is now the 10th European market where Neuraxpharm will have a direct presence. It is the fifth country the company has imprinted its footprint on in 2019.

Located in Liestal, near Basel, S.T.U. owns the leading natural CBD brand Hemplix™.

Hemplix™ CBD oils have been developed exclusively in Switzerland using 100% Swiss organic raw materials and are subject to strict quality regulations. Another major S.T.U. brand product is smartCBD™. The products are currently sold through retail and online sales channels largely in Switzerland and Germany. This meets strict requirements across the European regulatory landscape.

According to recent market research, Switzerland is seen as the European hub for CBD with a broad range of formats available and a high per capita spend. The European CBD market currently stands at a conservative EUR 300 million with a strong growth forecast over the next few years to reach EUR 1.7 billion by 2023[1]. In addition, CBD is being explored in the EU for potential health benefits, including in CNS. Neuraxpharm will leverage S.T.U.'s brand recognition and product loyalty through its established commercial networks.

Neuraxpharm will further enhance its digital offering by leveraging S.T.U.'s online presence to enter new channels through S.T.U.'s distribution network. Dr Jörg-Thomas Dierks, Chief Executive Officer of Neuraxpharm, said, "We are very pleased to welcome S.T.U. GmbH to the Neuraxpharm family, and to expand our portfolio of products with the acquisition of a leading CBD brand. "As the European consumer market for natural products continues to grow, this range of CBD products offers high quality Swiss-made brands. "We believe this acquisition offers us an excellent platform to capitalise on the substantial opportunity in the double-digit growing CBD market and expand our presence in a key European country."

European consumer awareness and usage of CBD products is still relatively low, offering a clear opportunity for Neuraxpharm to be at the forefront of an emerging area. With this acquisition, Neuraxpharm is positioned to become a pioneer in the rapidly evolving CBD market. Commenting on the transaction, Claudio Iannuzzi and Pascal Siegrist, Managing Directors of S.T.U., said, "As a pioneer in the European CBD market with a very strong product portfolio and established online marketing and distribution networks, we are very excited to team up with Neuraxpharm, the leading CNS company, to advance our CBD business internationally."

About Neuraxpharm – the European CNS specialist

Neuraxpharm is a leading European specialty pharmaceutical company focused on the treatment of central nervous system disorders (CNS), with a direct presence in Germany, Spain, Italy, France, United Kingdom, Poland, Czech Republic, Slovakia and Hungary.

Backed by funds advised by Apax Partners, Neuraxpharm has a unique understanding of the CNS market built over 30 years. With its focus on CNS, Neuraxpharm develops and commercialises value-added medicines, standard generics and consumer healthcare products e.g. probiotics and other nutraceuticals, and is continuously striving to offer a wide range of effective, high quality and affordable CNS treatment options in Europe.

About S.T.U. GmbH: Owner of market leading brand Hemplix™

Based in Liestal, Switzerland, S.T.U. GmbH (Swiss Trade Union or S.T.U.) develops and sells natural CBD consumer products produced using 100% organic raw materials, marketed under different brands, including Hemplix™ and smartCBD™. Hemplix™ CBD oil is produced from the highest quality hemp grown organically in Switzerland. The production of the CBD oil takes place in a protected environment and is subject to strict quality regulations, always striving for the best and purest quality of the finished product. https: //www.hemplix.ch/

About SSP: Exclusive Financial Transaction Consultant of the Neuraxpharm acquisition of Swiss-based S.T.U. GmbH

SSP’s dedicated Private Equity Services team works with private investors and corporates to provide full support for structuring the right deal. We provide end-to-end services across the investment lifecycle that deliver the required results. By leveraging SSP’s partner network we are able to mobilise the right formula to ensure success for our clients. We provide a full range of M&A advisory services from acquisitions to raising funds across all industries. Our team possesses an ample set of skills and international experience to ensure the finest strategy development, pre-merger planning and comprehensive analysis throughout the transaction.

We focus on delivering uncompromised services in business valuation, negotiation, pricing and structuring of transactions.

Sources:

https://www.neuraxpharm.com/neuraxpharm-enters-booming-cbd-market-with-the-acquisition-of-leading-switzerland-based-stu-gmbh-n-34-en

https://markets.businessinsider.com/news/stocks/european-cns-specialist-neuraxpharm-enters-booming-cbd-market-1028638300