South Africa: Pharmaceutical group Dis-Chem bids $23mln for Baby City
South Africa’s pharmaceutical group Dis-Chem announced it has entered in talks to buy the baby care product retailer Baby City. The group, co-founded in 1978 by Ivan and Lynette Saltzman, proposes to pay R430 million ($23.2 million) for the acquisition.
The transaction includes a loan to Baby City’s shareholders and a guarantee to ensure the company’s liquidity in a context marked by the spread of the covid-19 pandemic. The closing of the transaction is subject to the approval of the South African Competition Authority and is expected to take place by the end of October 2020.
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At the end of this process, the 33 stores operated by Baby City will be integrated into Dis-Chem’s supply chain. Michel Aronoff will retain his position as Baby City’s Chief Executive Officer. The company he manages achieved a turnover of R855 million in the financial year ending February 2020.