Caring Pharmacy to expand operations via acquisitions

by BERNAMA / pic credit:

7-ELEVEN (M) Holdings Bhd’s 75%-owned subsidiary, Caring Pharmacy Retail Management Sdn Bhd, is eyeing an expansion in the northern region of the peninsula via proposed acquisitions of equity interests in retail pharmacies and certain business assets.

7-Eleven said Caring yesterday signed several conditional agreements with various vendors to undertake the proposed acquisitions worth RM48.86 million.

In a joint statement yesterday, 7-Eleven and Caring said the latter inked agreements to acquire 67% of The Pill House Pharmacy Sdn Bhd (TPH) for RM25.51 million and 60% of Wellings Pharmacy Sdn Bhd for RM19.9 million.

Caring and TPH also signed agreements to buy certain business assets in three outlets currently held by Farmasi Sri Nibong Sdn Bhd and certain business assets in an outlet currently held by Farmasi Sri Nibong (Pekaka) Sdn Bhd for RM3 million and RM450,000 respectively.

Based on the pro forma revenue of the Caring group for the financial year 2019, the proposed acquisitions will increase the consolidated revenue of Caring by about 48.8% from RM573.25 million to RM852.92 million.

“The proposed acquisitions serve as a new platform of growth for the Caring group, whereby it will expand its business footprint into the northern part of Malaysia covering Penang, Kedah and Perlis,” Caring Pharmacy Group Bhd MD Chong Yeow Siang said.

He said the exercise will also allow the Caring group to leverage the strength of Georgetown Pharmacy and Wellings Pharmacy brands and reputation in northern Malaysia, and it is expected to contribute positively to the future earnings of the Caring group and accordingly, 7-Eleven.

The proposed acquisitions are expected to be completed by the end of this year.

On the completion of the proposed acquisitions, Caring group’s pharmacy outlets will increase to 165 from 139, an addition of 26 pharmacy outlets operating under three brand names namely — Caring Pharmacy, Georgetown Pharmacy and Wellings Pharmacy.