Robinsons Retail Holdings Inc. (RRHI) has acquired 100% ownership of Rose Pharmacy, a subsidiary of Dairy Farm.
Another strategic agreement between Robinsons and Dairy Farm
In a statement on Friday 16th October, RRHI said it acquired Rose Pharmacy through its subsidiary South Star Drug Inc. from Mulgrave Corporation B.V., subsidiary of Dairy Farm. The value and other details of the acquisition have not been disclosed, but it signed (virtually) a share purchase agreement with Dairy Farm.
Dairy Farm acquired 49% share in Rose Pharmacy in 2015 and took full ownership in November 2018. Established in 1952, Rose Pharmacy is a leading drugstore chain in the Visayas and Mindanao with nearly PHP9bn (US$185.4m) in net sales in 2019 and over 300 stores.
This is the second share purchase agreement between RRHI and Dairy Farm, after a similar agreement in 2018 for the acquisition of Rustan Supercenters Inc. The deal saw Dairy Farm gain 20% stake in RRHI. Rustan’s Supermarket is now known as the Marketplace.
Boosting coverage and creating opportunities for innovation
Robina Gokongwei-Pe, RRHI’s President and CEO, said, “I am delighted that Rose Pharmacy will be part of our portfolio as it takes us back to our hometown in Cebu, where my father and JG Summit Holdings and RRHI founder John Gokongwei, Jr. started as an entrepreneur […] the deal also further bolsters our strategic partnership with Dairy Farm to strengthen our position in Philippine multi-format retailing. We first worked with Dairy Farm for the acquisition of Rustan Supercenters, Inc. in 2018, which deepened our footprint in the premium supermarket space. Our acquisition of Rose Pharmacy yet again offers ripe opportunities for innovation through strategic synergies.”
David Goh, South Star Drug's Managing Director, said, “Together, we can leverage our scale and synergies to drive wider product assortment, better customer service and offer greater value to our customers across Philippines when they need it most.”
Ian McLeod, Dairy Farm Group’s Chief Executive, said, “Dairy Farm and Robinsons have been in partnership since 2018, and we share the same values and approach to delivering great value, services, and products to our customers. By bringing these businesses together we have created an enhanced and strengthened pharmacy network, which will provide growth opportunities to team members, and enable greater competitiveness, service and value to customers across the Philippines.”
Want to know more?
Dairy Farm’s five strategic priorities:
- Maintain strength in Hong Kong
- Grow in China
- Build capability
- Turnaround Southeast Asia
- Drive digital innovation
Subscribers can view Dairy Farm’s strategic outlook here.