CE David Kneale said on Monday the acquisition would enable Clicks to broaden its coverage in the retail pharmacy market and accelerate its national pharmacy presence.
The transaction is expected to be effective from next month and is subject to regulatory approvals.
New Clicks has the option to acquire the remaining 40% of the business after three years.
“Subsequent to regulatory approval the business will be rebranded as Clicks Direct Medicines and will complement the Clicks in-store pharmacy network. Courier pharmacy customers will now also have the option to collect chronic medication at Clicks pharmacy stores across the country,” Kneale said.
All medication for Clicks Direct Medicines would be procured through UPD, the wholesale pharmaceutical distributor in the New Clicks stable.
“Courier pharmacy is a growth market in SA, with an estimated 10% of all chronic medication being dispensed through courier pharmacies last year. We believe courier pharmacy is cost effective and supports the government's objective of making medicine more affordable and accessible to all South Africans,” he said.
Direct Medicines was established in 1994 as part of Afrox Healthcare, later Life Healthcare. Following a management buyout from Life Healthcare in 2005 the group has been independently owned and managed.
After the New Clicks acquisition, the remaining shares in Direct Medicines would be held by empowerment group Vuwa Healthcare 26% and management 14%.
Direct Medicines has an annual turnover of R225m, dispenses more than 650,000 prescriptions across SA, Lesotho and Swaziland and has ties with over 100 medical schemes.
Source: Business Day
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