MerryMart Consumer Corp. is acquiring a 51-percent stake in a 21-store pharmacy chain in Mindanao.
MerryMart said in a disclosure to the stock exchange it is set to acquire Cecile's Pharmacy, the biggest pharmacy chain in Zamboanga City.
The final price and relevant terms and conditions will be determined upon closing of the transaction.
Cecile’s Pharmacy, which has been in operation since 1964, has 21 stores with over 300 workforce. It posts positive net income and earnings before interest, taxes, depreciation and amortization, according to MerryMart.
“There are only very few drug store chains in the Philippines that has been operational for decades and still remain to be the market leader and the top-of-mind brand in their respective market region. Cecile's Pharmacy chain is one of that select group that stood the test of time and we believe this acquisition will add great value to the MerryMart Group's ecosystem," said MerryMart chairman Edgar Sia II.
Sia said the management team of Cecile's Pharmacy chain would continue to run the operations of the company in tandem with the MerryMart team.
Aside from enhancing MerryMart’s trade volume in the pharmacy and prescription drug items, the acquisition will bring significant improvement on cost efficiencies of the company.
This is the second acquisition in the pharmacy space made by MerryMary this year. Last week, the company said it signed agreement for the acquisition of a 75.08-percent stake in Carlos Drugs-Lucena Inc. for P339 million.
Carlos SuperDrug, which was founded in 1946, is the biggest pharmacy chain in Quezon province with 27 stores.
Sia said the group would continue with organic expansion, while pursuing mergers and acquisition opportunities in both the grocery and pharmacy space to accelerate growth and capitalize on the continued consolidation from traditional to modern retail in the country.
The acquisition of Carlos SuperDrug and Cecile’s Pharmacy will form part of the 100 branch network goal of the MerryMart group in 2021.
