Terry White Group shareholders have unanimously approved the pharmacy group’s merger with Chemmart at the company’s general meeting last week.
Terry White, chairman of the pharmacy group said the merger will create one of Australia’s largest retail pharmacy networks with approximately 500 pharmacies and $2 billion in retail turnover.
“The size of this transaction is unprecedented in our industry and will create a new force within Australian pharmacy,” White said.
New Zealand based EBOS Group Limited, parent company of Chemmart and one of the largest Australasian wholesalers and distributors of healthcare, medical and pharmaceutical products, will sell the business assets of Chemmart to Terry White Group Limited in exchange for equity and will invest additional capital to achieve a 50 per cent equity stake in the merged entity.
The merged group will leverage scale and combined capabilities to increase the competitiveness and marketing strength of the pharmacies and to improve service levels and health delivery to customers.
White added the driving force behind the transaction is growth.
“And it is a significant milestone in achieving our vision of becoming Australia’s strongest retail pharmacy network and customer’s first choice for health and value,” he said.
Completion of the merger is scheduled for October 31 with the $13 million (98.4 cents per share) capital reduction anticipated to be paid to shareholders on November 21.
