BUSINESS NEWS - Clicks is planning to buy Pick n Pay’s retail pharmacy business, that will include 25 in-store pharmacies. These pharmacies will be rebranded to Clicks, increasing its national presence to 632 pharmacies.
According to a Stock Exchange News Service (SENS0 statement, Clicks will obtain the pharmacy licences and ethical drug stock, and all staff working in the pharmacies will be transferred to Clicks in terms of the proposed transaction.
Clicks is already the biggest pharmacy chain in the country, before adding the Pick n Pay pharmacies.
“The acquisition of the pharmacy chain accelerates our strategy of extending the convenience and accessibility of the Clicks pharmacy network. Currently, 50% of the country’s population live within 6 kilometres of a Clicks pharmacy and we aim to improve this over time as we get closer to customers.
“We welcome the opportunity to bring our experience in retail pharmacy to customers of Pick n Pay,” Vikesh Ramsunder, chief executive officer (CEO) of the Clicks Group said.
Adrian Naude, CEO of Pick n Pay, said Pick n Pay only held a relatively small number of pharmacies over the years.
“We have recently set out our key strategic objectives in terms of future growth and these do not include the development of a large pharmacy division.
“Our main objectives in terms of transferring our pharmacy business have been to ensure that our customers have a seamless transition and maintain the quality of service they have been used to with Pick n Pay and that our pharmacy staff are looked after. We are pleased to have reached an agreement with Clicks which meets both of these objectives.”
The proposed transaction is subject to approval by competition and regulatory authorities.
According to the SENS statement, the transaction will not have a material impact on the earnings and financial position of either company.