At the beginning of the year, Woolworths stepped away from its $872 million bid for Australian Pharmaceutical Industries (API), the owner of Priceline, leaving the way open for Wesfarmers to seal the deal for $764 million.
But Woolworths still had its eye on the pharmacy sector. The supermarket chain’s subsidiary, Healthy Life, has acquired the non-retail assets of SuperPharmacy, the 20 year old online discount chemist, in a deal valued at $20 million.
The agreement was announced a day after Woolworths revealed a much larger transaction. The grocery chain has taken a 55 per cent stake in Petspiration, the owner of the PETstock pet care chain, for $586 million.
SuperPharmacy joined Woolworths Everyday Rewards loyalty program in April last year, allowing members to earn one dollar on online SuperPharmacy purchases. Since August, the company has also been a third party supplier on Healthylife.com.au.
SuperPharmacy will be re-named Healthy Life Pharmacy and will be helmed by Ananth Sarathy, the current Managing Director of Healthy Life, as part of a new vertical including Big W and Petspiration.
Warren Turner, the owner of SuperPharmacy, will remain with the business and the company’s six retail stores in NSW, Victoria, Queensland, SA and WA will continue to be owned and operated independently.
Woolworths engaged with the Pharmacy Guild of Australia during negotiations, but the powerful industry body is monitoring the agreement and its longer term implications.
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