KUALA LUMPUR (Oct 5): Caring Pharmacy Retail Management Sdn Bhd, a 75%-owned unit of 7-Eleven Malaysia Holdings Bhd (SEM), is acquiring equity interest as well as business assets in several pharmaceutical outlets for a combined cash consideration of RM48.86 million.

Caring inked several conditional sale agreements with various vendors for the proposed acquisitions today, SEM and Caring said in a joint statement.

These include a 67% equity interest in The Pill House Pharmacy Sdn Bhd for RM25.51 million and a 60% stake in Wellings Pharmacy Sdn Bhd for RM19.9 million.

Caring is also buying certain business assets in three outlets currently held by Farmasi Sri Nibong Sdn Bhd for RM3 million, as well as in Farmasi Sri Nibong (Pekaka) Sdn Bhd for RM450,000.

The Pill House group is primarily involved in the retailing of pharmaceutical, healthcare and personal care products under the "Georgetown Pharmacy" brand name through its outlets in Penang, Kedah and Perlis.

The Wellings group, meanwhile, is primarily involved in the retailing of pharmaceutical, healthcare and personal care products under the "Wellings Pharmacy" brand name through its outlets in Penang.

The acquisitions — which are expected to be completed by the end of 2020 — will add 26 more pharmacies under the Caring group, to 165 from 139, the statement said.

The outlets will be operating under three brand names, namely Caring Pharmacy, Georgetown Pharmacy and Wellings Pharmacy, it said.

"Based on the pro forma revenue of the Caring group for the financial year 2019, the proposed acquisitions will increase the consolidated revenue of Caring by about 48.8% from RM573.25 million to RM852.92 million," it added.

Chong Yeow Siang, managing director of Caring Pharmacy Group Bhd, said: "Caring and its subsidiaries operate a chain of community pharmacies in Malaysia primarily under the "CARiNG" brand name through more than 100 stores located mainly in the Klang Valley, Melaka and Johor regions.

"The proposed acquisitions serve as a new platform of growth for the Caring group whereby it will expand its business footprint into the northern part of Malaysia covering Penang, Kedah and Perlis."

He added: "The proposed acquisitions will allow the Caring group to leverage on the strength of Georgetown Pharmacy and Wellings Pharmacy brands and reputation in northern Malaysia, and this is expected to contribute positively to the future earnings of the Caring group and accordingly the SEM group."

Shares in 7-Eleven closed one sen or 0.76% higher to RM1.33, valuing the group at RM1.64 billion.