KUALA LUMPUR, Oct 5 — 7-Eleven Malaysia Holdings Bhd’s (SEM) 75 per cent-owned subsidiary, Caring Pharmacy Retail Management Sdn Bhd, is eyeing an expansion in the northern region of the peninsula through the proposed acquisitions of equity interests in retail pharmacies and certain business assets.
SEM said Caring today signed several conditional agreements with various vendors to undertake the proposed acquisitions worth RM48.86 million.
In a joint statement today, SEM and Caring said the latter had inked agreements to acquire 67 per cent of The Pill House Pharmacy Sdn Bhd (TPH) for RM25.51 million and 60 per cent of Wellings Pharmacy Sdn Bhd for RM19.90 million.
Caring and TPH also signed agreements to buy certain business assets in three outlets currently held by Farmasi Sri Nibong Sdn Bhd and certain business assets in an outlet currently held by Farmasi Sri Nibong (Pekaka) Sdn Bhd for RM3 million and RM0.45 million, respectively.
Based on the proforma revenue of the Caring group for the financial year 2019, the proposed acquisitions will increase the consolidated revenue of Caring by about 48.8 per cent from RM573.25 million to RM852.92 million.
“Caring and its subsidiaries operate a chain of community pharmacies in Malaysia primarily under the ‘CARiNG’ brand name through more than 100 stores located mainly in the Klang Valley, Melaka and Johor regions.
“The proposed acquisitions serve as a new platform of growth for the Caring group, whereby it will expand its business footprint into the northern part of Malaysia covering Penang, Kedah and Perlis,” Caring Pharmacy Group Bhd managing director Chong Yeow Siang said.
He said the exercise would also allow the Caring Group to leverage on the strength of “Georgetown Pharmacy” and “Wellings Pharmacy” brands and reputation in northern Malaysia, and this was expected to contribute positively to the future earnings of the Caring group and accordingly SEM.
The proposed acquisitions are expected to be completed by the end of this year.
On completion of the proposed acquisitions, the Caring group’s pharmacy outlets will increase to 165 from 139, an addition of 26 pharmacy outlets operating under three brand names namely — Caring Pharmacy, Georgetown Pharmacy and Wellings Pharmacy.
The TPH group is primarily involved in the retailing of pharmaceutical, healthcare and personal care products under the “Georgetown Pharmacy” brand name through its outlets in North Malaysia region of Penang, Kedah and Perlis.
Meanwhile, the Wellings group is primarily involved in the retailing of pharmaceutical, healthcare and personal care products under the “Wellings Pharmacy” brand name through its outlets in Penang. — Bernama
