TERRY White Management will merge with Chemplus in a $2.76 million deal to "future-proof" its pharmacy network.
Terry White parent company TWC Group Investments Limited will purchase all shares in the South Australian chain, which is expected to be finalised on July 31.
TWCGIL chairman Terry White says the merger will allow the combined group to capitalise on existing growth opportunities in the market.
"The combined group has a market share in excess of eight per cent and will provide increased business opportunities for all members at a time when scale matters," White says.
"We will be working very closely with the Chemplus network to ensure we identify the best of both worlds to further drive success in all of the pharmacies."
Under the merger, Chemplus CEO Nick Tsamaidis will remain in a senior management role in South Australia, while chairman Scott McGregor will join the TWCGIL board.
McGregor says the merger is a good fit for both companies, particularly with Terry White's investment into its retail infrastructure.
"The tightening in the market demands large scale retail pharmacy capability and we needed to consider how we would approach that in order to best support the team at Chemplus as well as our member pharmacies into the future," McGregor says.
"We reached the conclusion that the best way for us to grow our member businesses and provide the best opportunities for the Chemplus team was to partner with a likeminded brand with a track record for winning."
The Chemplus distribution centre will be transferred to the Symbion facility at Underdale in a separate arrangement.
McGregor says both networks will benefit following the merger, leveraging the strengths of each brand.
"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," he 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."
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