Sigma Healthcare to merge with Chemist Warehouse in a AUD8.25bn deal.

Sigma Healthcare, an Australian, ASX-listed company with a focus on the pharmacy industry, agreed to merge with Chemist Warehouse, a pharmacy company, in a AUD8.25bn deal. CWG shareholders will receive in aggregate, AUD700m in cash subject to any leakage adjustment under the MIA. CWG shareholders will also receive such number of Sigma shares that results in CWG shareholders owning 85.75% of MergeCo, which will be valued at an enterprise value of AUD8.8bn. "The Proposed Merger is a step-change event for Sigma. With Sigma having had a commercial relationship with CWG and its founders spanning more than 40 years, we are excited by the efficiencies, synergies and growth opportunities that we anticipate being unlocked through the merger of the two complementary businesses. The combined group will have extensive capabilities and expertise to benefit franchisees and customers, including through more brand choice, products and services and expanded marketing capabilities," Michael Sammells, Sigma Chairman.