CWH/My Chemist Group’s Asia push is attracting potential investors, reports suggest
The financial industry is taking ever more interest in the success if the Chemist Warehouse/My Chemist Group, according to mainstream media reports.
The group’s push into lucrative Asian markets is attracting a lot of interest from potential investors eager for a chance to enter the pharmacy market if the company is floated.
According to reports in the Australian Financial Review corporate filings in the past six months show that new entities have been established to facilitate Chemist Warehouse’s push into Asia.
The filings show changes to the structure of Chemist Warehouse’s online sales unit, EPharmacy Group, and the creation of several new entities including CW IP Limited and others to facilitate Asian expansion.
“The company earlier this year entered a joint venture in Malaysia to roll out a chain of pharmacies under the Chemist Warehouse brand,” the report said.
“It will be known as Chemist Warehouse Berjaya Asia and it is understood the first outlet will open next year”.
“Chemist Warehouse is part of the My Chemist Retail Group and a partnership arrangement between BRW Rich List members Jack Gance and Mario Verrocchi,” the report states.
“The group also houses brands including My Chemist and My Beauty Spot, and has estimated annual revenue of $2.9 billion”.
Chemist Warehouse “controls” more than 300 pharmacies and is composed of 100 partners and 9,500 employees, according to IBIS World data.
According to the AFR the group is “being touted by bankers as a medium-term float candidate, despite its complicated ownership structure and regulatory restrictions around the local $15.8 billion pharmacy sector”.
Rival pharmacy chain the Terry White Group has already said it is considering an initial public offer within 12 to 18 months after merging with rival chain Chemmart.
That transaction will see pharmaceutical wholesaler EBOS Group emerge with 50 per cent of the merged group after selling the Chemmart banner to Terry White Group.