After negotiations lasting almost 30 months and a complicated legal dispute, Israeli pharmacy chain Super-Pharm has signed a deal to acquire a local Chinese drugstore chain. With 37 branches, the chain is not one of China’s largest.
Super-Pharm plans to continue converting the chain’s branches to its own format, with its own unique collection of products, and will also change its name to Super-Pharm.
Super-Pharm is acquiring 51% of the parent company that owns 51% of the chain.
Super-Pharm chairman Leon Koffler and CEO Lior Reitblatt declined to state the acquisition price. Drugstore activity in China currently includes only pharmacies. With the entry of the Israeli chain, product selection will be expanded to include toiletries, cosmetics, infant items, and life-style products.
Reitblatt said today, “I believe that the experience that we have accumulated in the Polish market, together with the success of the business model that we use in Israel, will enable us to maximize the opportunity provided by the Chinese market. We are prepared to deploy hundreds of branches in China in the coming years.”
Published by Globes [online] - www.globes.co.il - on November 21, 2005