South Australian pharmacy group Chemplus has announced a merger with Terry White Chemists to create what they claim will be the largest retail pharmacy network in the state.

Under the arrangement, Queensland-based Terry White’s parent company will buy out all of the Chemplus shares for $2.76 million.

Chemplus pharmacies will retain their own branding, a spokesperson told InDaily.

Chemplus chairman Scott McGregor said the merger benefited both pharmacy networks.

He said there was a tightening in the market which demanded “large scale retail pharmacy capability”.

“We reached the conclusion that the best way for us to grow our member businesses and provide the best opportunities for the Chemplus team was to partner with a like-minded brand with a track record for navigating change,” he said.

TWC Group Investments Limited (TWCGIL) – the parent entity that owns the Terry White Management business and the Terry White Chemists brand – will purchase all Chemplus shares on 31 July.

TWCGIL chairman Terry White said the combined group would have a national market share of more than 8 per cent.

“We will be working very closely with the Chemplus network to ensure we identify the ‘best of both worlds’ to further drive success in all of the pharmacies,” he said.

Under the merger, Chemplus CEO Nick Tsamaidis will “remain in a leadership position based in South Australia”, according to a statement from the two pharmacy groups.

“Mr McGregor will join the Board of TWCGIL and the Chemplus Board will be engaged in the network’s advisory group.”

The Chemplus distribution centre will be transferred to the Symbion facility at Underdale.

– InDaily