Dis-Chem set to list on the JSE
Pharmacy group, Dis-Chem, says it will list on the Johannesburg Stock Exchange (JSE), in the food and drug retailers sector.
The company said it has more than doubled its store base since 2010 and tripled since 2008. It currently has 101 stores in South Africa and two partner stores in Namibia after adding 30 stores over the past three financial years.
Every Dis-Chem store has between one and three wellness clinics in store, it said.
The group added that it has already agreed lease terms for 29 new stores since the financial year ended February 2016, comprising three stores which were opened during the six months ended 31 August 2016, a further eight stores to be opened during the six months ending 28 February 2017 and at least 18 stores expected to open during the financial year ending 28 February 2018.
Dis-Chem, through its wholly-owned subsidiary CJ Distribution, also has a wholesale business serving third party pharmacy retailers and Dis-Chem’s own retail pharmacies.
Over time, Dis-Chem said it expects to expand CJ Distribution’s operations to serve both wholesalers and a wider range of retailers.
In the 2016 financial year, Dis-Chem generated revenue of R15.5 billion and EBITDA of R1.1 billion. The Retail Business and CJ Distribution accounted for approximately 90% and 10%, respectively, of Dis-Chem’s EBITDA excluding inter-group amounts.
For the six months ended 31 August 2016, Dis-Chem said it generated revenue of R8.7 billion.
The group’s existing shareholders comprise the Saltzman Family Trust, holding 66.9% of the company’s shares through Ivlyn Proprietay, with other key management holding 23.4% and the remaining 9.7% held by a financial investor.
Ivan Saltzman, co-founder and CEO of Dis-Chem said: “Our decision to list on the JSE is an important next phase of Dis-Chem’s growth story. A listing will support our growth and allow us to better service our customers and other stakeholders.
“It also facilitates a partial exit whilst allowing existing shareholders and key management to remain materially invested ensuring strong alignment between management, existing and new shareholders.”
Saltzman said he will continue to lead Dis-Chem as CEO, with a strategy to identify attractive locations for new pharmacies as well as convert independent pharmacies in attractive script markets.
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