ROBINSONS Retail Holdings Inc. (RRHI) on Friday, October 16, 2020, said it has acquired 100 percent ownership of Rose Pharmacy from a subsidiary of Hong Kong-based Dairy Farm International Holdings Limited.
In a statement on Friday, RRHI said it acquired Rose Pharmacy through its subsidiary South Star Drug Inc. from Mulgrave Corporation B.V., subsidiary of Dairy Farm.
The Gokongwei-led company did not state the value and other details of the acquisition. It virtually signed a share purchase agreement with Dairy Farm on Friday.
It was the second share purchase agreement between RRHI and Dairy Farm, after a similar agreement in 2018 for the acquisition of Rustan Supercenters Inc., the company that operated the former Rustan’s Supermarket as well as Shopwise and Wellcome.
After the transaction, Dairy Farm gained 20 percent equity in RRHI. Rustan’s Supermarket is now known as the Marketplace.
Dairy Farm acquired 49 percent share in Rose Pharmacy in 2015 and increased this to 100 percent in November 2018.
Rose Pharmacy, established in 1952 as a family-run drugstore in Cebu City, is a leading drugstore chain in the Visayas and Mindanao with nearly P9 billion in net sales in 2019 and over 300 stores.
“I am delighted that Rose Pharmacy will be part of our portfolio as it takes us back to our hometown in Cebu, where my father and JG Summit Holdings and RRHI founder John Gokongwei, Jr. started as an entrepreneur. Mr. John also admired Rose Pharmacy for its strong brand reputation in Visayas and Mindanao,” said Robina Gokongwei-Pe, president and CEO of RRHI.
“The deal also further bolsters our strategic partnership with Dairy Farm to strengthen our position in Philippine multi-format retailing. We first worked with Dairy Farm for the acquisition of Rustan Supercenters, Inc. in 2018, which deepened our footprint in the premium supermarket space. Our acquisition of Rose Pharmacy yet again offers ripe opportunities for innovation through strategic synergies,” she continued.
Dairy Farm, in a separate statement, announced it has agreed to deepen its strategic partnership with RRHI by combining its interest in wholly-owned Rose Pharmacy with RRHI brand Southstar Drug.
The combined business is geographically complementary, with greater market share and competitiveness, creating synergies whilst leveraging scale. This strengthened network will enable the enlarged business to compete more effectively and participate strongly in the future growth of the sector, Dairy Farm said.
“Dairy Farm and Robinsons have been in partnership since 2018, and we share the same values and approach to delivering great value, services, and products to our customers. By bringing these businesses together we have created an enhanced and strengthened pharmacy network, which will provide growth opportunities to team members, and enable greater competitiveness, service and value to customers across the Philippines,” Ian McLeod, Dairy Farm Group chief executive, said. (Marites Villamor-Ilano/SunStar Philippines)