Ebos Group plans to beef up its Australian retail pharmacy exposure selling its 270-store Chemmart business to Terry White Group and taking a 50 per cent stake in the enlarged pharmacy chain.
The deal is subject to several conditions including Terry White Group shareholder approval and is expected to be wrapped up in late October, Ebos said.
Once completed, Terry White Group's retail network will expand to 500 and its financial statements will be consolidated into Ebos' accounts.
Ebos will receive shares for the sale of Chemmart's assets and inject an undisclosed amount of new capital to lift its stake to 50 per cent, with chief executive Patrick Davies taking a seat on the board.
"The pharmacy industry is positioned for growth with Australia's ageing population and positive community attitudes towards health and wellbeing," Davies said.
Terry White Group chief executive Andrew White will lead the enlarged franchise management entity with Ebos's Chemmart executive director Duncan Phillips taking the role of chief operating officer.