Rami Levy completes acquisition of Good Pharm

Good Pharm  photo: Rotem Grossman

Rami Levy has bought the low-cost pharmacy and toiletries chain, which has nine branches, for NIS 16 million.

Four months after the Israel Antitrust Authority allowed Shufersal Ltd. (TASE:SAE) to acquire New-Pharm, Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.'s (TASE:RMLI) purchase of 50.01% of Good Pharm has now been approved. The deal makes Levy the controlling shareholder in this small but growing pharmacy chain at a cost of NIS 16 million.

NIS 7 million will be paid to Good Pharm's current shareholders for their shares and NIS 9 million to Good Pharm for shares allocated to Rami Levy, which will finance the acquisition from its 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.

Published by Globes [online], Israel business news - www.globes-online.com - on April 26, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Good Pharm  photo: Rotem Grossman
Good Pharm photo: Rotem Grossman
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