• Sigma and Chemist Warehouse to merge, creating a leading Australian retail pharmacy franchisor and full-line pharmaceutical wholesaler
• Merged Group expected to deliver potential cost synergies of ~$60 million per annum by year 4
• Chemist Warehouse Shareholders to hold ~85.75% of Merged Group, Sigma Shareholders to hold ~14.25%

Sigma Healthcare Ltd has announced a proposed merger with Chemist Warehouse, which will create a leading Australian retail pharmacy franchisor and full-line pharmaceutical wholesaler and distributor. The Merged Group will support Australia's largest retail network of franchisees across four core brands - Chemist Warehouse, My Chemist, Amcal and Discount Drug Stores. The transaction is expected to deliver potential cost synergies of approximately $60 million per annum by the fourth year following implementation. Upon implementation, Chemist Warehouse Shareholders will hold approximately 85.75% of the Merged Group, while Sigma Shareholders will hold approximately 14.25%. The Merged Group will be led by Vikesh Ramsunder as Chief Executive Officer, with Mario Verrocchi continuing to lead the Chemist Warehouse business. The transaction is subject to Sigma Shareholder approval and other conditions, and the Sigma Board unanimously recommends that Sigma Shareholders vote in favour of the resolutions.

The Merged Group expects to deliver potential cost synergies of approximately $60 million per annum by the fourth year following implementation of the transaction.

The Merged Group will have an enhanced platform to pursue a range of growth opportunities across retail, wholesale and logistics, including the continued rollout of the Chemist Warehouse Australian Franchise Network stores and complementary Amcal and Discount Drug Stores brands, offshore expansion via Chemist Warehouse's international network, and across private label, online, ancillary franchise services, wholesale services and third-party logistics business.