MerryMart Consumer Corp. Announced on Monday that it has agreed to acquire a majority stake, or a minimum post-investment stake, in pharmacy chain Carlos Drugs-Lucena, Inc.
The signed agreement for MerryMart to acquire 67 percent of Carlos SuperDrug did not specify a price or any other terms of the transaction. According to MM representatives, the acquisition of Carlos SuperDrug was intended to “enhance MERRYMART’s range of pharmacy offerings,” “strengthen its supply chain,” and add “Pharmacy DNA to the MERRYMART ecosystem.”
“We are excited to soon work with the Carlos Group to further grow the business and at the same time welcome the Pharmacy DNA to the MerryMart ecosystem,” MerryMart Chairman Edgar “Injap” J. Sia II said in a statement.
Carlos SuperDrug has 27 locations that will continue to be operated by the Carlos SuperDrug team, “in tandem with the MerryMart team”. MM also said that it is interested in additional mergers and acquisitions for its grocery business and pharmacy business. MM is owned by Injap Sia, co-owner of DoubleDragon. It is said to be the largest in Quezon province. Diomedes and Generosa Carlos, husband and wife entrepreneurs, founded it in Lucena City in 1946.
“This transaction will give MerryMart greater market share in the region and increase its competitiveness whilst strengthening its supply chain as MerryMart continues to strive to deliver better value to its customers and stakeholders,” Marriana H. Yulo-Luccini, the chief financial officer of MerryMart, said.
Mr. Sia said it will look for more opportunities to “accelerate its growth to capitalize on the continued consolidation from traditional to modern retail in the Philippines.”
MerryMart intends to continue looking for mergers and acquisitions with grocery stores and pharmacies in order to organically expand to 1,200 branches across the country by 2030.
It also set a goal of generating P120 billion in system-wide recurring consumer sales revenue.