8/2/2018 – Creador-owned Malaysian retail pharmacy chain RedCap Pharmacy has on Tuesday announced that it is merging with local pharma retailer BIG Pharmacy.
Creador’s founder and chief executive Brahmal Vasudevan confirmed the deal and noted that the PE firm has a significant minority position in the combined entity. He, however, did not disclose the financial terms of the deal.
The merger is said to have been completed in January this year and the combined entity which has a total of 34 outlets located in Klang Valley and Johor will be rebranded into BIG Pharmacy.
Regarding the post-merger consolidation and growth plans for BIG Pharmacy, Vasudevan said, “We hope to grow organically. As a combined business, we have a larger footprint and the ability to invest.”
Formerly known as D’Apotic Pharmacy, RedCap was acquired by Creador in May 2015 for MYR 100 million (about US$24.35 million) from its three pharmacist founders.
Post-acquisition, the PE firm relaunched the pharmacy with a new management team and rebranding in 2016.
The initial funding covered RedCap’s first phase of growth over the next two years which included nationwide expansion and improving its service quality by providing extensive pharmaceutical knowledge in a fresh modern customer-friendly retail environment.
BIG Pharmacy, on the other hand, started out in 2007 as L&L Healthcare Supply Sdn Bhd founded by Lee Meng Chuan and Lim Sin Yin, both of whom studies as pharmacists. It operates 13 stores in and around Klang Valley, with its latest store opening at Seremban last year.
For Creador, RedCap is its third portfolio company in the healthcare space, with the other two based in India – pharmaceuticals company Corona Remedies and hospital chain Paras Healthcare.
According to media reports, Creador is further planning to launch a new US$500 to US$600 million fourth fund this year primarily focused on the Philippines, India, Indonesia, Malaysia, Singapore, and Sri Lanka.
This news is published on Reuters.