Ebos to take full ownership of Terry White

Ebos to take full ownership of Terry White
TerryWhite Chemmart has around 500 franchised pharmacies in Australia

22 October 2018 - Deborah Wilkes

Ebos Group is set to acquire all of the shares in Australia's Terry White Group that it does not already own for approximately AUD50 million (USD35 million).

Ebos holds just over 50% of the shares following the merger on 31 October 2016 of the Ebos-owned Chemmart business with the former Terry White Group (click here to read the News story).

The resulting retail pharmacy network – TerryWhite Chemmart – has around 500 franchised pharmacies in Australia.

Distinct brand proposition

John Cullity, chief executive officer of Ebos, said TerryWhite Chemmart was "one of the largest retail pharmacy networks in Australia" and had developed a "distinct brand proposition in a highly-competitive market".

The move to full ownership, added Cullity, would provide economic and strategic benefits to both Ebos shareholders and TerryWhite Chemmart franchisee members.

Ebos chairman Mark Waller pointed out that Ebos was a "major integrated healthcare organisation with the financial resources and capability to enable TerryWhite Chemmart to achieve the scale required to fulfil its potential to become Australia's pre-eminent health-focused retail pharmacy group".

Completion in late December 2018

The transaction – which is subject to a number of conditions, including approval by minority shareholders in Terry White Group – should be completed in late December 2018.

The independent directors of Terry White Group have unanimously recommended that shareholders accept the deal, which would see Ebos pay AUD3.55 in cash per share by way of a scheme of arrangement.

Terry White Group reported revenue of AUD126 million in the 12 months ended 30 June 2018, representing a rise of 38% compared to the same period a year earlier.

Net Profit After Tax (NPAT) was AUD4.4 million, compared with a loss of AUD0.9 million in the previous financial year.

Ebos describes itself as the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products, as well as a leading marketer and distributor of consumer products and animal care brands.

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