Dis-Chem Pharmacies said it has entered into a binding agreement with Pure Pharmacy Holdings and its existing shareholders to acquire 100 percent of its issued share capital and shareholder claims for R282 million.
Dis-Chem first announced its intention to acquire Pure Pharmacy Holdings, trading as Medicare Health, during its interim results presentation last month.
The group said the transaction includes a net working capital guarantee to ensure that the working capital metrics align with that of Dis-Chem and the transaction remains subject to suspensive conditions, including approval from the competition authorities.
The group explained the rationale behind the acquisition is that it recognises that the characteristics of Medicare align with those of Dis-Chem.
“Both groups are committed to delivering an unrivalled one-stop healthcare experience, with convenience, excellent customer service and value at the core of the brand promise. Many of the stores in the Medicare portfolio are located in convenience centres, in geographies where Dis-Chem is currently under-represented, giving the group access to new markets,” Dis-Chem said.
Medicare is a healthcare and pharmacy group, offering a one-stop solution for everyday pharmacy and primary healthcare needs, all under one roof, in 50 pharmacies across four provinces.
Medicare generated revenue of R1 billion for the year to end February 2019, with dispensary contributing two thirds to the revenue.
The group also announced that it has entered into agreements with the founding shareholders and management of the Kaelo group of companies, in which it will acquire 25 percent of the issued share capital and shareholder claims of Kaelo Holdings.
Dis-Chem chief executive Ivan Saltzman said: “The acquisitions announced significantly extend the group's footprint, and reaffirms the group's commitment to the enablement of clinics as the primary healthcare point of entry to the private healthcare system, at an affordable price while enhancing customer convenience.”
Dis-Chem also announced that the acquisition of Baby City which was announced in May has met all the outstanding conditions and the transaction has been completed and the effective date for the transaction is January 1, 2021.
This comes after the Competition Tribunal gave its go-ahead towards the end of last month.
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