Chemist Warehouse to Be Listed in Reverse Listing via Sigma Healthcare in $350M Capital Raising

Chemist Warehouse to be Listed via Sigma Healthcare in Reverse Listing

Chemist Warehouse is set to be listed in a reverse listing via Sigma Healthcare.

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Tipped to go it alone, the owners of the retail giant, the Melbourne based Gance and Verrocchi families have moved to take control of Sigma Healthcare via a $350M capital raising via Goldman Sachs.

Chemist Warehouse has 500 stores and net profits of around $300 million in 2022-23 on $3.1 billion of revenue.

A major seller of small healthcare appliances the business has been built up on large volume low margin marketing.

The first Chemist Warehouse stores opened in Melbourne in 2000 under Jack Gance and Mario Verrocchi today most major suburbs have a Chemist Warehouse store.

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Under the deal the Chemist Warehouse owners will take control of Sigma Healthcare in a reverse listing.

The AFR claims that sources said there will be balanced representation at senior management level and on the board, which will grow to eight members from seven.

Sigma CEO Vikesh Ramsunder will remain at the helm, given his prior experience in running a similar business at one of South Africa’s biggest pharmaceutical wholesalers, Clicks Group, before he joined Sigma in 2021.

Sigma’s biggest investor is HMC Capital run by ex-banker David Di Pilla, who is the cousin of Chemist Warehouse co-founder Mario Verrocchi.

Chemist Warehouse was a foundation tenant of Mr Di Pilla’s Home Consortium, according to substantial shareholder notices.

Sigma won back the $2 billion Chemist Warehouse wholesale pharmaceuticals contract from New Zealand-based rival EBOS in June. As part of this, Chemist Warehouse took a 10 per cent stake in Sigma, which together with Home Consortium, controls 30 per cent of the small group claims the AFR.

About Post Author

David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.

Chemist Warehouse, the retail giant known for its large volume, low margin marketing strategy, is set to be listed in a reverse listing via Sigma Healthcare. The Melbourne-based Gance and Verrocchi families, owners of Chemist Warehouse, have taken steps to gain control of Sigma Healthcare through a $350 million capital raising led by Goldman Sachs.

With 500 stores and net profits of approximately $300 million in 2022-23 on $3.1 billion of revenue, Chemist Warehouse has established itself as a major seller of small healthcare appliances. The business has experienced significant growth since its first stores opened in Melbourne in 2000 under the leadership of Jack Gance and Mario Verrocchi, with Chemist Warehouse stores now present in most major suburbs.

Under the reverse listing deal, the Chemist Warehouse owners will assume control of Sigma Healthcare. According to sources, there will be balanced representation at senior management level and on the board, which is set to expand from seven to eight members. Sigma CEO Vikesh Ramsunder will continue to lead the company, leveraging his prior experience in running a similar business at South Africa’s Clicks Group before joining Sigma in 2021.

HMC Capital, run by former banker David Di Pilla, is Sigma’s largest investor and also a cousin of Chemist Warehouse co-founder Mario Verrocchi. It is worth noting that Chemist Warehouse was a foundation tenant of Mr. Di Pilla’s Home Consortium, as stated in substantial shareholder notices.

In June, Sigma won back the $2 billion wholesale pharmaceuticals contract from New Zealand-based rival EBOS, including Chemist Warehouse as a 10% shareholder. Together with Home Consortium, the two entities control 30% of Sigma Healthcare, contributing to its significant market presence.

The reverse listing via Sigma Healthcare represents a strategic move by Chemist Warehouse to further solidify its position as a leading player in the retail industry. With its extensive store network and strong financial performance, Chemist Warehouse is poised for continued growth and expansion.

About the Author:
David Richards, a seasoned technology writer with over 30 years of experience, has been covering the industry for various publications. As a former Fleet Street journalist, he has received accolades for his work, including an Award Winning Series on the Federated Ships Painters + Dockers Union and a Logie Award for Outstanding Contribution To TV Journalism. Richards is well-versed in technology’s impact on both business and consumers, drawing from his extensive background in media and public relations..

Source

channelnews.com.au said BREAKING NEWS:Chemist Warehouse Set To Be Share Listed Via Reverse Listing – channelnews

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