Sigma Pharmaceuticals Limited (ASX:SIP) will spend $24.5 million to buy smaller rival Central Healthcare.
The pharmaceuticals company says the deal has already received clearance from Australia’s competition regulator.
Central Healthcare is a wholesaler and distributor of pharmaceutical products to hospitals and retail pharmacies who also own and manage the Pharmasave retail brand.
CEO Mark Hooper says the acquisition will provide Sigma with an opportunity to diversify its service offering by establishing an independently operated wholesale and retail channel.
Sigma Pharmaceuticals reported a net profit of $16.3 million in the first half of the 2014 financial year.
SIP Price at posting:
63.2¢ Sentiment: None Disclosure: Held
