EAC has signed an agreement with Alpharma ApS which is expected to lead to a legally binding agreement for the acquisition of the full ownership rights of the Dumex trademark in China, Cambodia, Hong Kong, Japan, Laos, Mongolia, Philippines, South Korea, Taiwan and Vietnam as of the end of 2003.
At present, EAC has a license from Alpharma, which allows EAC to use the Dumex trademark in a series of Asian countries until 2089. This agreement, however, permits Alpharma to use the trademark in those markets also for a number of pharmaceutical products. Following a phase out period Alpharma will cease to use the trademark for their own products in these countries.
For a number of years EAC has been the owner of the trademark in Singapore, Brunei, Thailand and Malaysia. Within the last year EAC has also acquired the Dumex trademark from Pfizer in India, Pakistan, Bangladesh, Nepal and Sri Lanka and an agreement with Alpharma will mean that EAC takes over the Dumex trademark in all major markets throughout Asia.
The latest acquisition amounts to a total consideration of USD 1.25 million (DKK 8,350,000). In addition to the purchase price, EAC has agreed to pay certain costs amounting to DKK 1 million related to Alpharma’s registering of name changes.
The agreement also includes an option for EAC to acquire the Dumex trademark without additional purchase consideration in all remaining countries, where Alpharma is the registered owner.
For EAC becoming the owner of the brand facilitates control against infringements of the brand or the manufacturing and marketing anywhere in the world of products likely to detract from the goodwill of the Dumex brand. In addition it provides EAC with full freedom in respect of potential future geographical expansion of the Dumex brand product portfolio.
The Dumex brand is a key driver in the fulfilment of EAC’s strategy of becoming a leading player in Asia’s nutritional foods industry.
