Chemist Warehouse will take a 10-per-cent stake in consumer products supplier McPherson’s as part of a broader strategic distribution partnership between the two companies.
McPherson’s will become an exclusive long-term distributor of a portfolio of health and beauty brands owned or controlled by Chemist Warehouse, outside of the retailer’s Australia and New Zealand network. The range includes Wagner Vitamins, Wagner Body Science, Bondi Protein, Foster Grant, INC and Microgenics, all of which will now be available to all of McPherson’s wholesale customers.
The distribution rights will be for an initial term of five years commencing July 1, the same date as the shares are issued to Chemist Warehouse.
“McPherson’s will have three five-year options to extend the arrangements, subject to certain minimum performance thresholds on a brand-by-brand basis which McPherson’s considers it is well placed to meet,” the two companies said in a statement.
Chemist Warehouse will also expand the range of McPherson’s brands which the retailer ranges in Australia and New Zealand. Moosehead, Maseur, Fusion Health, Stratton, Sugar Baby and Happy Flora will be added.