Ahead of the release of its half year results on Thursday, Sigma Pharmaceuticals (SIP) has increased its coverage of pharmacy chains by acquiring the Discount Drug Store (DDS) banner for $26.7 million.
Sigma’s pharmacy banners already include Amcal, Amcal Max and Guardian, while DDS provides buying and retail services to 121 pharmacies operating under its banner.
Sigma said yesterday that DDS had a strong presence on the east coast with its reach extending into Western Australia and Tasmania.
"This acquisition brings to our group another strong pharmacy brand with a great operational format and consistency of retail offering," Sigma chief executive Mark Hooper said.
"DDS will also bring further wholesaling growth to Sigma as we transition the business over the next 12 months," he said.
SIP 1Y – Sigma acquires DDS for $26.7m
Sigma said the acquisition of DDS would immediately lift earnings.
Sigma said DDS would be located within Sigma’s Central Healthcare Services group which it acquired in March 2014 and operates as a stand-alone business. More than 300 outlets will now be based in this stand alone subsidiary of Sigma’s.
The acquisition of DDS will be funded from existing cash resources, the company said.
Sigma shares ended 2.3% down at 82.5c.
