Clicks buys Pick n Pay pharmacy business


Clicks buys Pick n Pay pharmacy business


Published Date: 2021-05-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Clicks buys Pick n Pay pharmacy business

The health, beauty and pharmacy retailer says the acquisition will speed up the rollout of its nationwide pharmacy network.

Clicks is buying Pick n Pay's retail pharmacy business as it accelerates the expansion of its network across the country. The deal includes 25 in-store pharmacies which will be rebranded to Clicks.

The health, beauty and pharmacy chain said it would acquire the pharmacy licences and ethical drug stock from Pick n Pay, while all staff employed in the pharmacies would transfer from the supermarket group to Clicks. In April, Clicks said it planned to speed up its store expansion with the opening of 40 new stores and 36 pharmacies this year. At the end of February it had 760 stores in total and 601 pharmacies. The acquisition from Pick n Pay takes its national presence to 632 pharmacies.

Pick n Pay said its growth plans didn't include the development of its pharmacy network, which had remained relatively small. Selling to Clicks met its main objectives of ensuring that its customers had a seamless transition and would still receive the same quality of service they had been used to with Pick n Pay, and that its pharmacy staff were looked after.

No value was given for the deal and Clicks and the deal wasn't expected to have a material impact on the earnings or financial position of either company.

The transaction needs to be approved by the competition and regulatory authorities.

Pick n Pay's shares rose 0.1% to R56.04 yesterday while Clicks closed 1.4% higher at R250.53.


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