Life shareholders approve Pharmacybrands merger

Photo / Brett Phibbs.

Life Pharmacy shareholders have voted overwhelmingly to merge with Pharmacybrands, owner of the Unichem and Amcal chemist brands.

At the NZX listed company's annual general meeting this week there was no opposition to its proposal for a share swap with the rival company.

For every Pharmacybrands share it will offer 39.783 fully paid ordinary shares in Life Pharmacy.

The swap values Life at $36 million and Pharmacybrands at $20 million.

Life Pharmacy acquired the Care Chemist group 15 months ago, so the merged entity will include 25 Life, 21 Care and 203 Unichem and Amcal pharmacies.

The sector is dominated by about 600 independent pharmacies so the combined group would put the company in a far stronger position, said chairman Mark Vuksich.

"With The Warehouse committed to rolling out pharmacies throughout New Zealand we need to ensure we are well established and ready to represent and defend the pharmacy channel in this country."

Key benefits of the merger included central office cost savings, increased purchasing power and the ability to enhance the range of services offered.

The group would also have the opportunity to develop and extend own label products.

Life Pharmacy shares closed unchanged at 55c yesterday.