First Merger of the Pharmacy Chain 36.6
In January, 2016, the pharmacy chains PJSC 36.6 and A5 Pharmacy Retail Limited, the parent company of the pharmacy chain A5, finally agreed on a merger. The companies had already held talks about a possible merger in 2015 and finally agreed in February of this year. The combined company will gain an additional share issue of $300 million.
The pharmacy chains will issue additional shares of 36.6, which will remain the parent company after the final unification, which will take place within the next 6 months. For the pharmacy chain 36.6, the possible merger is a positive step in its development on the pharma market. This is their first M&A transaction.
In 2015, 36.6’s market share reached 3.3%. The A5 Pharmacy chain was established in 2006. Since then, they have focused on providing customers with superior service, and they represent a leading brand in the Russian pharmacy sector.
36.6 is the second-largest pharmacy in the country, while A5 had a share of up to 2.4% until June 2015. Roman Buzdalin and Sergei Solodov, the co-founders of A5, recently published the sale of their stake of 68.75% in the pharmacy chain. The businessman Roman Avdeyev and the second shareholder Baring Vostok Private Equity Fund, will retain their stake of 31.25% in the Company.
If a partnership between the two retailers occurs, which will be discussed on March 4th, the two pharmacy chains would grow to be the market leader with an estimated 2,200 pharmacies. The union will underscore current market demand and become a leading part in the pharma industry.
Currently, the two pharmacy chains have only reached a preliminary agreement on the merger. The transaction will be held until necessary regulatory approvals are obtained. 36.6 will experience positive developments through this unification, and it will be beneficial for both shareholders and consumers as well.