Sigma settles with CWH

Sigma has announced that it has reached a settlement with the My Chemist/Chemist Warehouse group over its wholesaling arrangements

MC/CW had announced an intention to source some of its lines from an alternate CSO supplier, but Sigma had maintained that the discount giant was not entitled to do so.

The settlement has been negotiated after Sigma dropped its legal action against the MC/CW group in July, with the two entities instead entering a formal negotiation period.

An important feature of the settlement is that MC/CW has undertaken not to pursue the procurement of products from another CSO wholesaler for the remaining term of the current Supply Agreement between the two.

As a result of this settlement, Sigma has confirmed current year EBIT guidance of $90m, with Financial Year 19 anticipated to be at a similar level, subject to further acquisitions or business development initiatives.

“Importantly, both parties are committed to a more constructive approach to discussions for a new agreement, with discussions expected to advance over the 2018 calendar year,” says Mark Hooper, Sigma CEO and Managing Director.

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