Hetero Group exits pharmacy retailing; Sales biz to Apollo Hospitals

The Hetero Group has decided to exit pharmacy retail business and focus on their core pharmacy and bulk drugs business by selling the assets of Hetero Med Solutions to Apollo Hospitals. The Chennai-headquartered Apollo Hospitals Enterprise Ltd (AHEL) has acquired the Hyderabad-based pharmacy chain Hetero Med Solutions Ltd (HMSL) for a consideration of Rs 146 crore. At present HMSL has around 320 stores across Telengana, Andhra Pradesh and Tamil Nadu. Post the completion of acquisition these stores is expected to be renamed as Apollo Pharmacy.
 
“The acquisition would be in the form of purchase of the business undertaking, on a slump sale basis, subject to completion of due diligence and other statutory formalities,” said Apollo Hospitals in a press release.  
 
Currently, Apollo Pharmacy is the largest organised pharmacy chain in the country and the acquisition would help it to cement the position along with consolidating its operations in the three States. At present there are about 1680 Apollo pharmacies across the country.
 
Shobana Kamineni, Executive Vice Chairperson of AHEL, said, "In order to drive the standalone pharmacy business segment's growth to the next stage, Apollo was on the lookout for acquisitions to grow inorganically and considers the Hetero Pharmacy chain as the right choice given its significant presence in the relevant territories.”
 
FOR COMPLETE REPORT READ: Apollo Hospitals acquires Hetero Pharmacy assets for Rs 146 cr