MERRYMART Consumer Corp. on Monday said it inked an agreement to own a majority or a minimum post-investment stake of 67% in pharmacy chain Carlos Drugs-Lucena, Inc.
“We are excited to soon work with the Carlos Group to further grow the business and at the same time welcome the Pharmacy DNA to the MerryMart ecosystem,” MerryMart Chairman Edgar “Injap” J. Sia II said in a statement.
Also known as Carlos SuperDrug, the pharmacy chain is said to be the biggest in Quezon province. It was founded in 1946 by husband-and-wife entrepreneurs Diomedes and Generosa Carlos in Lucena City.
Its existing management team will continue to run the company, along with the MerryMart team. It has 27 operating branches to date.
“This transaction will give MerryMart greater market share in the region and increase its competitiveness whilst strengthening its supply chain as MerryMart continues to strive to deliver better value to its customers and stakeholders,” Marriana H. Yulo-Luccini, chief financial officer of MerryMart, said.
Mr. Sia said it will look for more opportunities to “accelerate its growth to capitalize on the continued consolidation from traditional to modern retail in the Philippines.”
MerryMart plans to continue seeking mergers and acquisitions with groceries and pharmacies for its organic expansion, as it aims to have a total of 1,200 branches across the country by 2030.
It also set a goal of generating P120 billion in system-wide recurring consumer sales revenue.
The company runs MerryMart Store, MerryMart Market, MerryMart Grocery, MerryMart Wholesale and Dark Groceries. It recently formed MM Consumer Technologies Corp. with MBOX Smart Lockers to kickstart its consumer technology portfolio.
Shares of MerryMart at the stock exchange went up by 4.02% or 16 centavos on Monday, closing at 4.14 each. — Keren Concepcion G. Valmonte