Three months after the Israel Antitrust Authority allowed Shufersal Ltd. (TASE:SAE) to acquire New-Pharm, Rami Levy is also gaining a foothold in the pharmacy business. Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) is likely to acquire 50.01% of Good Pharm for NIS 16 million in a deal that will make Levy the controlling shareholder in a small but growing pharmacy chain. Completion of the deal is subject to approval by the Antitrust Authority.
Rami Levy will pay NIS 7 million to Good Pharm's existing shareholders and NIS 9 million to Good Pharm for the shares allocated to him. He plans to pay for the deal from his own resources.
Good Pharm co-CEOs Adam Friedler and Ohad Sandler, who founded Good Pharm in 2016, will continue in their positions and retain a 49.99% stake in the chain, which has nine branches. The chain's 10th branch is slated for opening in Holon one month from now. Good Pharm's sales turnover is estimated at NIS 60 million. The chain sells toiletries, cosmetics, medical pharma products, optical goods, and products for babies. The average size of Good Pharm's branches is 150 square meters. Under the cooperation that will follow the company's acquisition, the pace of opening branches will speed up, with a target being set of 40 branches within 18 months.
Friedler said today, "We're glad and excited to cooperate with a chain whose goal is a consumer revolution in every home in Israel. By combining forces, we'll do this in the pharmacy fields, too."
Two weeks ago, the Antitrust Authority approved Levy as a partner with a 20% holding in Cofix Group Ltd. (TASE:CFX), which runs a chain of discount cafes and discount supermarkets in partnership with Green Lantern, controlled by Richard Hunter.
Advocates Jacob Savor and Lior Bar Nir from the M. Firon & Co. law firm represented Good Pharm in the deal, and Advocates Nir Oren and Shmulik Tzvi from the Amar Reiter Jeanne Shochatovitch & Co. law firm represented Rami Levy Chain Stores.
Published by Globes [online], Israel Business News - www.globes-online.com - on March 22, 2018
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