Terry White Chemists has acquired South Australian pharmacy network, Chemplus, in a strategic move to future proof its member pharmacies.
TWC Group Investments Limited, the parent entity that owns the Terry White Management business and the Terry White Chemists brand, will purchase all shares in Chemplus for $2.76 million with the transaction to be completed on July 31.
TWCGIL chairman, Terry White, said the merger was a significant step in the evolution of the industry and enabled the combined group to capitalise quickly on existing growth opportunities in the market place.
“The combined group has a market share in excess of 8 per cent and will provide increased business opportunities for all members at a time when scale matters,” White said.
Chemplus chairman, Scott McGregor, said the merger delivered benefits for both networks and enabled each to leverage the strengths of the other.“The two networks share a strongly aligned strategic position in terms of a focus on health and growth and we look forward to working together with the Terry White Chemists team to further strengthen the future for our members,” McGregor said.
“The combined group will form the largest retail pharmacy network in SA with the capability to support the growth aspiration of the overall business across the nation.”
Under the merger, Chemplus CEO, Nick Tsamaidis, is to remain in a leadership position based in SA and will join the board of TWCGIL and the Chemplus Board will be engaged in the network’s advisory group.
In a separate arrangement, McGregor said the Chemplus distribution centre would be transferred to the Symbion facility at Underdale, boosting logistical capabilities and enabling daily deliveries of over the counter stock to the network.
Symbion’s, Brett Barons, said he looked forward to expanding the services Symbion offers Chemplus.
“We have a very long association with the team at Chemplus and we really look forward to our ongoing involvement. We are pleased we can play an important role in improving services to the pharmacies,” Barons said.
McGregor said the decision to join the Terry White Chemists Group followed detailed analysis showing the strengths in the Chemplus offering would be further enhanced by greater scale to support improved efficiencies in the business model.
“The tightening in the market demands large scale retail pharmacy capability and we needed to consider how we would approach that in order to best support the team at Chemplus as well as our member pharmacies into the future,” he said.
“We reached the conclusion that the best way for us to grow our member businesses and provide the best opportunities for the Chemplus team was to partner with a like minded brand with a track record for navigating change.
