Chemist Warehouse will merge with pharmacy big Sigma Healthcare to create a pharmacy and healthcare big.
In doing so, Sigma will purchase Chemist Warehouse, making a publicly listed firm on the ASX with a market capitalisation of about $8.8bn.
Sigma Healthcare Limited, a significant Australia-based pharmaceutical wholesaler and pharmacy franchisors, made the announcement on Monday morning, asserting its intentions to amass the Chemist Warehouse Group (CWG).
If profitable, CWG founders Jack Gance and Mario Verrocchi will be part of the board, and WG shareholders will even personal 85.75 per cent of the brand new merged group, plus $700m in money consideration.
Sigma shareholder will retain the remaining 14.25 per cent of the merged entity.
In paperwork launched to the ASX, Sigma Healthcare mentioned the proposed merger would create a “full-service wholesaler, distributor and retail pharmacy franchisor”.
Sigma will even increase $400m in funds, managed by Goldman Sachs, to extend the working capital wanted to implement to new provide contract with Chemist Warehouse.
In order for the deal to proceed, the Australian Consumer and Competition Commission (ACCC) and New Zealand’s Overseas Investment Office might want to approve the merger. Shareholders from each teams will even vote to approve the deal, nonetheless CWG’s largest shareholder, HMC Capital has indicated it is going to vote in favour of the merger.
In a gathering with buyers held on Monday morning, Sigma chairman Michael Sammells mentioned the proposed merger would push each firms right into a “transformational and compelling” course.
“This is a rare opportunity to combine the core competencies of two strong healthcare businesses,” he mentioned.
Asked particularly about whether or not he anticipated difficulties with getting ACCC approvals, Mr Sammells mentioned he “respected” the watchdog’s course of an would “work cooperatively” with them.
“We’ve already committed an early engagement and we will work closely with them to meet their needs through the course of the transaction,” he mentioned.
CWG chairman Jack Grace mentioned the deal was a “unique opportunity” for each shareholders which might mix “CWG’s retailing and marketing capabilities and Sigma’s state-of-the-art distribution infrastructure and logistics capabilities”.
“We look forward to building the next chapter of CWG’s success for the benefit of our customers, staff, franchisees and shareholders,” he mentioned.
Originally printed as Chemist Warehouse to merge with pharmaceutical big Sigma Healthcare
Source: www.dailytelegraph.com.au
