TWC to merge with Chemmart


Terry White shopfront

Chemmart and Terry White Group are set to merge.

EBOS Group Limited has announced it has entered into an agreement to merge its Chemmart business with the Terry White Group businesses to create one of Australia’s largest retail pharmacy networks.

The combined businesses will have retail turnover of approximately $2bn per annum and approximately 500 pharmacies.

Under the new arrangements, EBOS Group will sell the Chemmart business and subscribe for shares in Terry White Group Limited (TWG), which will result in EBOS Group consolidating TWG in its financial statements from completion. The expected earnings impact is not material to EBOS Group.

Completion of the transaction is subject to a number of conditions, including TWG shareholder approval. Subject to the satisfaction or waiver of those conditions, the transaction is expected to complete as early as late October 2016.

EBOS Group CEO Patrick Davies says the merger will provide both immediate and long-term benefits through building the strongest retail pharmacy network in Australia, underpinned by a substantial and sophisticated retail pharmacy model.

“Chemmart and Terry White Group have strong, vibrant brands that have established leadership positions within the market,” said Davies in an announcement today.

“The pharmacy industry is positioned for growth with Australia’s ageing population and positive community attitudes towards health and wellbeing. The combined businesses will take a leadership position on health services within community pharmacy, whilst also maintaining a value for money offering.”

“This merger is about capitalising on those strengths and continuing to develop competitive and sustainable businesses for pharmacy owners while also significantly increasing our ability to meet the evolving needs of our customers.

“This is another important step in our strategy to position EBOS Group for further growth in retail pharmacy in Australia.”

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