Chemist Warehouse merges with Sigma to create $8.8 billion company
Chemist Warehouse Group will merge with Sigma Healthcare to create a single healthcare company worth a combined $8.8 billion.
The deal means the group will own more than 1000 stores, including 54 stores internationally in New Zealand, Ireland and China.
The merger will land the company on the ASX and place it among the largest 200 listed companies.
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Chemist Warehouse will merge with Sigma Healthcare that owns Amcal and Discount Drug Stores. Google Maps
The new company is expecting to generate $3 billion in revenue in the first full year of the contract, according to the investor presentation.
Sigma Healthcare owns brands Amcal, Discount Drug Stores, Guardian and PharmaSave brands.
Chemist Warehouse also owns the brand mychemist.
Chemist Warehouse was founded by Mario Verrocchi and Jack Gance, who are both now billionaires.
The group's shareholders will own 85.75 per cent and will receive a $700 million payday as part of the merger, the Australian Financial Review reports.
The first store was opened in 1972 as a single chemist in Reservoir, Melbourne and the first Chemist Warehouse store opened in 2000.
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