Pharmacybrands Group enters into agreement to acquire Radius Pharmacy
Pharmacybrands Group enters into agreement to acquire Radius Pharmacy
February 14, 2011
ANNOUNCEMENT ON SIGNING
The Pharmacybrands Group has today entered into an agreement with the owners of Radius Pharmacy to purchase the shares in Radius Pharmacy Limited. The proposed purchase price for the acquisition is $17.1 million with the assumption of debt of $18 million, subject to net asset and other adjustments.
The agreement is conditional on a number of matters including the approval of Pharmacybrands Limited’s shareholders and completion of finance arrangements. It is anticipated that a meeting of Pharmacybrands Limited’s shareholders will be held in late March 2011 with completion thereafter.
Radius Pharmacy Limited holds interests in 34 pharmacies and has annual revenues of ~$86 million.
The Pharmacybrands Group believes that Radius Pharmacy will have a strong fit with their existing business, further strengthening the Group’s ability to invest in systems and other resources to enhance the services to Pharmacies operating under their brands. Alan Wham, CEO Pharmacybrands, says retail competition is primarily from other channels and Pharmacybrands must invest further in both the tools and developing the skills to compete effectively, at the same time as investing in new service opportunities in primary care.
Mike Seymour, Executive Director for Radius Pharmacy Ltd says that the sale is a good result for the future of Radius Pharmacy. He says that having an owner committed to growing the business is extremely positive. Leveraging synergies between both businesses should reap significant benefits by utilising the different strengths of both parties.
About Pharmacybrands
Pharmacybrands Limited is New Zealand’s only listed Retail Pharmacy group and comprises the Unichem, Amcal, Life Pharmacy and Care Chemist brands. In total the company represents 257 retail outlets operating throughout New Zealand including 130 Unichem Pharmacies, 74 Amcal Pharmacies, 27 Life Pharmacies, 2 Life Outlet stores and 24 Care Chemist Pharmacies.
The company currently has two key substantial security holders - Cape Healthcare Limited (26.71%), and LPL Trusted Limited (26.7%). Cape Healthcare Limited is majority owned by The Zuellig Group, a private Asia-based conglomerate. The Zuellig Group owns and operates a diverse portfolio of industry-leading businesses including Norwood Agriculture in New Zealand.
About Radius Pharmacy
Radius Pharmacy has 34 locations throughout New Zealand with approximately 450 staff, and is respected as a quality player in the pharmacy sector.