The acquisition would be in the form of purchase of the business undertaking on a slump sale basis
Hyderabad: In an attempt to fast track its growth, Apollo Hospitals has agreed to acquire pharmacy stores of Hetero Med Solutions for about Rs 146 crore. “Apollo Hospitals Enterprise has entered into an MoU with Hetero Med Solutions for the acquisition of its retail pharmacy stores currently operated in Telangana, Andhra Pradesh and Tamil Nadu,” the company said in a filing to BSE.
Hetero Drugs, the parent company pf Hetero Med Solutions, was one of the companies, founded by B.P.S. Reddy.
The acquisition would be in the form of purchase of the business undertaking on a slump sale basis and comprises of 320 pharmacy stores, at an overall consideration not exceeding Rs146 crore, it added.“In order to drive the stand alone pharmacy business segment’s growth to the next stage, Apollo was on the look out for acquisitions to grow inorganically and considers the Hetero Pharmacy chain as the right choke given its significant presence in the relevant territories,” said Apollo Hospitals executive vice-chairperson Shobana Kamineni.
Apollo Hospitals expects to leverage on its proven track record of performance and operational capabilities to drive the growth and profitability of the combined network and create a long-term value for its shareholders, she added. Currently an unlisted firm, Apollo Pharmcy is expected to be listed on stock exchanges, if the government allows foreign direct investment in multibrand retail.
( Source : dc correspondent )
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