Beauty Direct confirms Life Pharmacy plans

Listed beauty products internet retailer Beauty Direct today confirmed plans to establish New Zealand's first listed pharmacy group.

Beauty Direct said it will pay up to $38.4 million to acquire a 49 per cent stake in 17 Life Pharmacy stores and a Unichem shop.

The stores have an underlying turnover of about $95 million per year, Beauty Direct said in a statement to the NZX.

Beauty Direct said it would fund the purchase with the issue of up to 591 million ordinary shares at 6.5 cents each.

Beauty Direct's online operations are run by 26 per cent shareholder and Beauty Direct director Gordon Ritson, who owns a Life Pharmacy franchise in Lower Hutt.

Beauty Direct shares slipped 2.2c to 13c by noon after coming out of a temporary trading halt pending the announcement of the deal this morning.

- NZPA