Two of the nation’s most well known pharmacy brands, Chemmart and Terry White Group, have inked a merger deal that will create one of Australia’s leading chemist groups.
The merger will form a group with $2 billion in annual sales and 500 outlets, just at a time that the federal government is considering the deregulation of the pharmacy sector.
It also comes as the aggressive Chemist Warehouse group continues to roll out its own store network, capturing an increasing market share of the pharmaceutical, healthcare and cosmetics industries as shoppers flood its stores, drawn in by discounting and promotions.
EBOS Group (EBO) today entered into an agreement to merge its Chemmart business with the Terry White Group businesses to create one of Australia’s largest retail pharmacy networks.
Under the deal, EBOS Group will sell Chemmart and subscribe for shares in Terry White Group, which will result in EBOS Group consolidating Terry White in its financial statements from completion. The expected earnings impact is not material to EBOS Group.
Completion of the transaction is subject to a number of conditions, including Terry White shareholder approval. Subject to the satisfaction or waiver of those conditions, the transaction is expected to be completed in late October 2016.
EBOS Group CEO Patrick Davies said the merger would provide both immediate and long term benefits through building the strongest retail pharmacy network in Australia, underpinned by a substantial and sophisticated retail pharmacy model.
“Chemmart and Terry White Group have strong, vibrant brands that have established leadership positions within the market,” Mr Davies said. “The pharmacy industry is positioned for growth with Australia’s ageing population and positive community attitudes towards health and wellbeing. The combined businesses will take a leadership position on health services within community pharmacy, whilst also maintaining a value for money offering.
“This merger is about capitalising on those strengths and continuing to develop competitive and sustainable businesses for pharmacy owners while also significantly increasing our ability to meet the evolving needs of our customers.”
“This is another important step in our strategy to position EBOS Group for further growth in retail pharmacy in Australia.”
It comes as the federal government considers deregulation of the pharmacy sector with the expected release soon of a discussion paper reviewing pharmacy remuneration and regulations.
http://www.theaustralian.com.au/business/companies/chemmart-terry-white-merge-to-form-major-pharmacy-network/news-story/0cd371d0e19eef31ec4b540d43d55cba
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