MerryMart Consumer Corp., the grocery chain led by businessman Edgar Sia II, on Monday said it has signed an agreement with Carlos Drugs-Lucena Inc., which operates Carlos SuperDrug, to acquire a majority stake in the pharmacy chain.
The company said it will acquire a minimum post-investment stake of 67 percent of Carlos SuperDrug. It did not disclose the cost of the acquisition.
The deal will enhance the company’s range of pharmacy offerings, allow MerryMart to expand its market share in the region and increase its competitiveness while strengthening its supply chain, the company said.
Carlos SuperDrug, the biggest pharmacy chain in Quezon Province, is set to celebrate its 75th anniversary next month. It was founded in 1946 in Lucena City by the husband and wife team of Diomedes and Generosa Carlos.
Carlos SuperDrug has 27 operating branches to date and is net income positive, MerryMart said.
The current management team of the pharmacy chain will continue to run the operations of the company in tandem with the Merrymart team.
“We are excited to soon work with the Carlos Group to further grow the business and at the same time welcome the Pharmacy DNA to MerryMart ecosystem,” Sia, the company’s chairman, said.
“While the MerryMart Group continues on with its organic expansion, MerryMart will continue to keep its eyes open for M and A [mergers and acquisition] opportunities in both the grocery and pharmacy space that would accelerate its growth to capitalize on the continued consolidation from traditional to modern retail in the Philippines.”
Under its “Vision 2030,” MerryMart is targeting to open a total of 1,200 branches nationwide and to generate P120 billion in system-wide recurring consumer sales revenue.
Image courtesy of Facebook page of Carlos SuperDrug