Malaysia’s two biggest retail pharmacy chains — BIG Pharmacy Healthcare Sdn Bhd and Caring Pharmacy Group Bhd — are merging in an RM850 million deal that will form a combined group with over 400 outlets and annual revenue of RM2.3 billion.
The merger gives the new entity a strong lead over competitors such as Alpro Pharmacy and Health Lane Family Pharmacy. Industry sources say the group may retain multiple brands, including BIG Pharmacy, Caring, Wellings and Georgetown.
With an estimated 11% share of Malaysia’s 3,500-pharmacy market, the group is set to accelerate its expansion in a sector growing 8% to 9% annually, still dominated by small, family-owned outlets.
The deal was confirmed last Friday after 7-Eleven Malaysia Holdings Bhd accepted BIG Pharmacy’s offer to acquire its 75% stake in Caring for RM637.5 million. BIG Pharmacy is also buying the remaining 25% from Motivasi Optima Sdn Bhd, which includes Caring founder and managing director Chong Yeow Siang.
BIG Pharmacy’s proposal values Caring at RM850 million, based on a price-earnings multiple of 19.6 times Caring’s FY2022 net profit of RM43.4 million (excluding Indonesia). The chain is backed by private equity firm Creador.
Creador eyes listing within three years
Creador founder and CEO Brahmal Vasudevan said the combined pharmacy business is expected to be listed within three years, following the fund’s successful IPO track record with Mr DIY Group (M) Bhd and CTOS Digital Bhd.
Caring was previously listed in 2014 before being taken private by 7-Eleven Malaysia in 2020 at RM2.60 per share, valuing it at RM566 million.
Under the new agreement, BIG Pharmacy will acquire Caring’s Malaysian retail operations and intellectual property, including the CARiNG, Georgetown and Wellings brands. However, the Indonesian operations under PT Era Caring Indonesia will be excluded.
7-Eleven Malaysia said the sale will unlock value and allow it to refocus on its convenience store business. Further details will be revealed once the definitive agreements are signed. The disposal will require shareholder approval.
BIG Pharmacy aims to elevate services nationwide
BIG Pharmacy CEO Lee Meng Chuan said the acquisition aligns with the company’s goal to improve healthcare access, affordability and service standards for Malaysians.
“By combining our expertise and resources, we aim to deliver an unparalleled healthcare experience and strengthen our community-focused mission,” he said.
Founded in 2006 by Lee and his wife Lim Sin Yin, BIG Pharmacy has expanded from its first outlet in Damansara Uptown to more than 270 branches nationwide. The group’s net profit more than doubled to RM31 million in FY2022.
Caring, founded in 1994 by five Universiti Sains Malaysia pharmacy graduates including Chong, opened its first store in Taman Muda, Cheras, before growing into one of the country’s top pharmacy brands.
