Chemplus, which supports the South Australian pharmacy network of the same name, is set to merge with Terry White Management in a strategic move to “future-proof” its member pharmacies.
Chemplus chairman Scott McGregor says the merger will deliver benefits for both networks, enabling each to leverage the other’s strengths.
“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 says.
“The combined business model ensures the unique capabilities and qualities of the Chemplus group are maintained and developed in South Australia, while providing access to the benefits of being part of a national network.
“The combined group will form the largest retail pharmacy network in South Australia with the capability to support the growth aspiration of the overall business across the nation.”
TWC Group Investments Limited, which owns the Terry White Management business and the Terry White Chemists brand, will purchase all shares in Chemplus for $2.76 million. The transaction is set to be completed on July 31.
TWCGIL chairman Terry White says the company will work very closely with the Chemplus network to ensure it identifies the best of both worlds and drive success in all the pharmacies.
“We’ve been talking to them over the last 12 months, and they’re really wonderful, decent people,” White told the AJP.
“We share a similar set of professional values: they have been pioneers in some areas, like the servicing of residential care patients and what goes along with that.
“So they’re a very good fit for us and this merger with them will mean we’re the number-one player in the South Australian market.
“This will give added strength to the 170 Terry White members and the 60 Chemplus members and put us all in a much stronger position to get scale and benefits for our members.”
Chemplus CEO Nick Tsamaidis will remain in a leadership position based in South Australia, while Scott McGregor will join the Board of TWCGIL. The Chemplus Board will be engaged in the network’s advisory group.
In a separate arrangement, McGregor says the Chemplus distribution centre will be transferred to the Symbion facility at Underdale, boosting logistical capabilities and enabling daily deliveries of OTC stock to the network.
McGregor says the decision to join Terry White 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.
He says Terry White Chemists’ strong health focus, comprehensive member offer and core retail capability makes it a good fit for the Chemplus members and team.
Pictured are Nick Tsamaidis, CEO Chemplus; Anthony White, CEO Terry White Group; Scott McGregor, Chairman of Chemplus; Terry White, Chairman of TWCGIL; Pan Boyaci, Director of Chemplus; Geoff Rischbieth, Director of Chemplus; and Kos Sclavos, Non-executive Director of TWCGIL.