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Over the last few years, Terry White has grown to become one of the largest Australian pharmaceutical chains in the country.
Following its merger with Chemmart in 2016, Terry White is looking to grow even further by selling itself off to Australia's largest and most diversified marketer, wholesaler and distributor healthcare goods: EBOS Group.
The group this morning gave its blessing to a takeover offer from EBOS to acquire all the shares it currently doesn't hold.
As of today, EBOS holds 50 per cent of the shares in Terry White, but is looking to acquire the remaining 50 per cent for $3.55 per share. If the takeover is approved by shareholders Terry White will become wholly owned by EBOS.
Speaking to Business News Australia CEO of Terry White Group Anthony White (pictured) says the rationale behind the takeover is to push forward with their plans for rapid acceleration.
"We've been with our board assessing all of the options for the business and the transaction with EBOS provides a number of economic and strategic benefits for our pharmacy owners and our shareholders as well as our team and they're mainly around a commitment to really accelerating our plans and expand the pharmacy network," says White.
"It's a great opportunity for our shareholders to realise on their shareholding at a premium to what they've paid."
The directors of TWG have granted their unanimous support for the takeover offer, recommending shareholders vote in favour of it at the next shareholder meeting expected to be held in December.
If the takeover is successful TWG will operate as part of EBOS Group's broader healthcare business and remain the core retail pharmacy franchise operation of EBOS in Australia.
EBOS chairman Mark Waller has assured TWG shareholders that it won't make any changes to the current senior executive management of the pharmacist group if the takeover is successful.
"We believe, with EBOS' support, TWG will have the financial strength to continue to innovate, pursue further expansion opportunities and accelerate the execution of its growth strategies," says Waller.
"We are supporting of TWG management's initiatives to improve the profitability of TerryWhite Chemmart pharmacies through supply chain efficiencies and by enhancing product ranges."
Founded by Terry and Rhonda White in 1959, the chain has become a retail staple around the country. The paid still have significant involvement in the company, and son and CEO Anthony White says that won't change following the takeover.
"To them it's much more than just a business," says White.
"It's a very personal relationship and they are really just wanting to support it and see that it grows and that it thrives into the next decade or the next ten decades."
"They're keen to keep pushing it and make sure it's a success and thrives into the future for a long time."
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Business News Australia
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