Strides & Apotex agree to merge their Australian businesses

Hospital business of Apotex will not form part of the merged entity and will be retained by Apotex

Strides announced that it has agreed with Apotex, in principle, to merge their respective Australian business operations. The transaction is subject to entering into definitive agreements between the parties, satisfactory due diligence, customary closing conditions and statutory approvals, including approval of Australian Competition and Consumer Commission (ACCC).

Transaction structure:

• The proposed structure will be arrived through a share swap
• Detailed corporate structure will be announced on closing
• Hospital business of Apotex will not form part of the merged entity and will be retained by Apotex
• The transaction is subject to entering into definitive agreement between the parties, satisfactory due diligence, customary closing conditions and statutory approvals, including approval of Australian Competition and Consumer Commission (ACCC).

Commenting on the transaction, Dennis Bastas, Executive Chairman of Arrow, stated that “The proposed merger will provide our joint Australian customers with unparalleled service and support from the businesses with which they have chosen to partner for over 15 years.”

“Once complete, our merged operation will continue to provide all of the Arrow and Apotex brands that our customers have come to know and trust, and further enhance our customer service and continuity of supply, to better help pharmacists grow their businesses. We, at Arrow, look forward to working alongside the experienced and talented Apotex team to make this a winning combination for all stakeholders,” said Bastas.

Commenting on the development, Roger Millichamp, CEO of Apotex Australia, said, “Both companies are currently in a strong commercial position, but will be better positioned to meet the future challenges of the Australian pharmaceutical industry following the merger. The proposed merger will take the best of both companies, optimize our shared cost base, and maintain the viability of our operations through more effective delivery of medicines and services to consumers and patients.”