• Sigma has purchased Central Healthcare for $24.5 million
• Further potential for an earn-out payment at 30 June 2015
• Acquisition will be immediately earnings accretive and will generate approximately $3.5 million in additional annual EBITDA in first full year of operations
• ACCC clearance already received
Victoria, Australia, 2014-3-27 — /EPR Retail News/ — Sigma Pharmaceuticals Limited (Sigma) is pleased to announce that it has entered into an agreement to purchase all of the issued capital of Central Healthcare Pty Ltd (Central Healthcare) for $24.5 million, with the potential for a further earn out payment at 30 June 2015.
The acquisition has already received clearance from the ACCC.
Central Healthcare is a wholesaler and distributor of pharmaceutical products to hospitals and retail pharmacies and is an approved CSO distributor in Victoria, NSW, ACT and Queensland. Central Healthcare also owns and manages the Pharmasave retail brand.
Central Healthcare has annual sales revenue of over $200 million and is expected to initially generate approximately $3.5 million annual EBITDA.
Central Healthcare and Sigma will continue to operate as stand-alone businesses. Importantly, the current CHS and Pharmasave management teams will continue to be the driving force behind these businesses.
“This acquisition is strategically important to Sigma as it will open new avenues for growth and will be immediately positive for EBITDA.’’ said Sigma’s CEO and Managing Director, Mark Hooper.
“Central Healthcare also provides Sigma with an opportunity to diversify its service offering by establishing an independently operated wholesale and retail channel that can leverage Sigma’s financial strength and national infrastructure to expand and develop new business models to meet the changing needs of the Australian pharmacy landscape,’’ Mr Hooper said.
Since 2010 Central Healthcare and Pharmasave have developed innovative pharmacy retail services and distribution strategies that have seen the group become one of Australia’s fastest growing retail pharmacy brands servicing over 170 stores nationally.
Sue Morgan
General Counsel and Company Secretary
SIGMA PHARMACEUTICALS LIMITED
ABN 15 088 417 403
PO Box 2890 (3 Myer Place) Rowville Victoria 3178 Australia
Telephone: +61 3 9215 9215 Facsimile: +61 3 9215 9799