Which two franchised pharmacy brands are planning to merge?

Sarah Stowe

A merger between two major pharmacy groups is set to create a retail pharmacy network with about 500 franchised outlets and a combined retail turnover of $2bn.

When the Terry White Group and Chemmart join forces the merged group will leverage scale and combined capabilities to increase competitiveness and marketing strength.

Terry White Group is the parent company of pharmacy franchisors Terry White Management and Chemplus. Headquartered in Brisbane, the group provides support to a network of approximately 230 pharmacies.

Chemmart, part of the EBOS Group, is a wellbeing pharmacy franchisor with a network of about 270 pharmacies throughout Australia.

Terry White Group CEO Anthony White said “We have a substantial array of core retail capabilities and support platforms which are scalable to handle this growth and support future network expansion.

“Significant investment in our Enterprise Resource Planning system is already driving efficiencies and improved operations, allowing pharmacists to raise customer service levels and drive strong retail sales growth.”

EBOS Group CEO Patrick Davies said the two businesses have strong brands with high levels of customer awareness and leading positions within the market.

“This merger is about capitalising on those strengths and continuing to develop a competitive and sustainable offering for all pharmacy owners in the group while also significantly increasing our ability to meet the evolving needs of our customers.”

The franchise management entity will be renamed to reflect the multiple brands within the group and a broader health focus. The management team will be led by current Anthony White and Chemmart executive director Duncan Phillips will join the existing executive team as chief operating officer.

The business assets of Chemmart will be sold by parent company EBOS Group Ltd to Terry White Group Ltd in exchange for equity. EBOS Group will also invest further capital to reach a 50 percent equity stake in the merged entity.

The proposed merger is subject to Terry White Group Limited shareholder approval.