Lbx Pharmacy Chain Joint Stock Company(603883) ( Lbx Pharmacy Chain Joint Stock Company(603883) ) continues to take the pace of M & A. the target of M & A is in Hunan, which will further consolidate the voice of the company in Hunan.
On March 6, Lbx Pharmacy Chain Joint Stock Company(603883) announced that it planned to acquire 71.96% equity of Hunan Huairen Great Health Industry Development Co., Ltd. (hereinafter referred to as “Huairen great health”) held by 14 counterparties including Lin Chengxiong and Chen Jianping with its own capital of 1.637 billion yuan (including loans).
According to the data, Huairen health has more than 660 self operated pharmacies in Hunan and Guizhou, which will fill the market of Lbx Pharmacy Chain Joint Stock Company(603883) in Western Hunan.
After the completion of this transaction, Lbx Pharmacy Chain Joint Stock Company(603883) will rank first in the number of seven stores in 14 prefectures and cities of Hunan Province. The number of stores in Hunan Province is expected to exceed 3000 (including franchisees), becoming the chain pharmacy enterprise with the first number of stores in Hunan Province.
consolidate Hunan market
Before the completion of this transaction, Lbx Pharmacy Chain Joint Stock Company(603883) holds 4.16% equity of Huairen dahealth. After the completion of this transaction, Lbx Pharmacy Chain Joint Stock Company(603883) will hold 76.12% equity of Huairen dahealth.
According to the audit, Huairen health achieved an operating revenue of 1.402 billion yuan and 1.079 billion yuan respectively in 2020 and January September 2021; The net profit was 99.992 million yuan and 58.499 million yuan.
At the same time, the performance commitment parties Lin Chengxiong, Chen Jianping, Huaihua Renxin and Huaihua Renshu made a commitment to the future performance of Huairen health: the net profit from 2022 to 2024 (referring to the net profit attributable to the shareholders of the parent company after deducting non recurring profits and losses after audit) shall not be less than 110 million yuan, 131 million yuan and 152 million yuan respectively. The average annual compound growth rate of performance from 2021 to 2024 is about 20.17%.
Lbx Pharmacy Chain Joint Stock Company(603883) said that this transaction is in line with the company’s overall development strategy. The target company will effectively fill the relatively blank area covered by the company’s marketing network in Hunan, and can effectively form regional joint forces, further expand the company’s market in Hunan and improve its market share. At the same time, the acquisition will greatly improve the company’s scale and procurement scale in the national pharmaceutical retail market, reduce procurement costs and improve the company’s overall profitability.
Lbx Pharmacy Chain Joint Stock Company(603883) also said that the company’s own funds and bank credit lines are sufficient, and this transaction will not cause capital pressure on the normal operation of the company. This transaction does not constitute a connected transaction, nor does it constitute a major asset reorganization.
promote the expansion of chain stores
Looking back, the company announced that in recent years, relying on the world bank’s long-term loans and direct financing funds and the public offering of 1.74 billion yuan at the beginning of this year, Lbx Pharmacy Chain Joint Stock Company(603883) is promoting the expansion of chain pharmacies. On the one hand, it is acquiring the regional leader of high-quality chain pharmacies; On the one hand, accelerate the expansion of self built stores and franchise stores.
This equity acquisition of Huairen dahealth is also a copy of Lbx Pharmacy Chain Joint Stock Company(603883) “holding spark acquisition mode”. After the transaction is completed, Lin Chengxiong, founder of Huairen dahealth, will still retain 12.49% equity.
Lbx Pharmacy Chain Joint Stock Company(603883) said that Lin Chengxiong, founder of Huairen health, has more than 20 years of experience in the retail industry. Lin Chengxiong retains part of the equity, continues to operate and promises to bet on performance. It is a choice for both sides to trust each other and aspire to long-term common development.
Wang Li, President of Lbx Pharmacy Chain Joint Stock Company(603883) said that by holding and acquiring regional leading enterprises through the “spark” mode of retaining part of the equity of the original founder and strong empowerment of the group headquarters, Lbx Pharmacy Chain Joint Stock Company(603883) will realize cross provincial expansion and deeply cultivate advantageous markets.
“In the future, Lbx Pharmacy Chain Joint Stock Company(603883) will continue to promote the expansion of chain drugstores in an orderly manner. Through the four carriages of direct marketing, spark (i.e. spark M & A), franchise and alliance, Lbx Pharmacy Chain Joint Stock Company(603883) will deeply cultivate the markets at different levels, aim at the sinking market and improve the absolute market share.” Wang Li also said.
According to the data, as of September 30, 2021, Lbx Pharmacy Chain Joint Stock Company(603883) has 8163 stores, including 6055 Direct stores and 2108 franchise stores. From January to September 2021, Lbx Pharmacy Chain Joint Stock Company(603883) added 1866 stores, including 1259 directly operated stores (724 self built stores, 143 asset mergers and acquisitions, 392 equity mergers and acquisitions) and 607 newly joined stores.
