Chemplus – the company that supports the South Australian pharmacy network of the
same name – is merging with Terry White Management in a strategic move to futureproof
its member pharmacies.

Chemplus Chairman Scott McGregor said the merger delivered benefits for both
networks and enabled each to leverage the strengths of the other.

“The two networks share a strongly aligned strategic position in terms of a focus on
health and growth and we look forward to working together with the Terry White
Chemists team to further strengthen the future for our members,” Mr McGregor said.

“The combined business model ensures the unique capabilities and qualities of the
Chemplus group are maintained and developed in South Australia, while providing
access to the benefits of being part of a national network.

“The combined group will form the largest retail pharmacy network in South Australia
with the capability to support the growth aspiration of the overall business across the

TWC Group Investments Limited (TWCGIL) – the parent entity that owns the Terry
White Management business and the Terry White Chemists brand – will purchase all
shares in Chemplus for $2.76 million with the transaction to be completed on July 31.

TWCGIL Chairman, Terry White, said the merger was a significant step in the
evolution of the Industry and enabled the combined group to capitalise quickly on
existing growth opportunities in the market place.

“The combined group has a market share in excess of 8% and will provide increased
business opportunities for all members at a time when scale matters,” Mr White said.

“We will be working very closely with the Chemplus network to ensure we identify the
‘best of both worlds’ to further drive success in all of the pharmacies.”

Under the merger, Chemplus Chief Executive Officer, Nick Tsamaidis, is to remain in
a leadership position based in South Australia. Mr McGregor will join the board of
TWCGIL and the Chemplus Board will be engaged in the network’s advisory group.

In a separate arrangement, Mr McGregor said the Chemplus distribution centre
would be transferred to the Symbion facility at Underdale, boosting logistical
capabilities and enabling daily deliveries of over-the-counter stock to the network.

Symbion’s Brett Barons said he looked forward to expanding the services Symbion
offers Chemplus.

“We have a very long association with the team at Chemplus and we really look
forward to our ongoing involvement. We are pleased we can play an important role in
improving services to the pharmacies,” Mr Barons said.

Mr McGregor said the decision to join the Terry White Chemists Group followed
detailed analysis showing the strengths in the Chemplus offering would be further
enhanced by greater scale to support improved efficiencies in the business model.

“The tightening in the market demands large scale retail pharmacy capability and we
needed to consider how we would approach that in order to best support the team at
Chemplus as well as our member pharmacies into the future,” he said.

“We reached the conclusion that the best way for us to grow our member businesses
and provide the best opportunities for the Chemplus team was to partner with a likeminded
brand with a track record for navigating change.”

Mr McGregor said Terry White Chemists’ strong health focus, comprehensive
member offer and core retail capability made it the best fit for the members and the
team at Chemplus.

“Terry White Chemists has demonstrated significant retail capability which has been
enhanced in recent times through the Group’s investment in retail infrastructure and
ERP-based retail systems,” he said.

“It is outperforming the market when it comes to sales and offers an impressive
private label stable.

“The group is very strong in the area of health and leads the way in terms of
professional services.

“All of these elements are important for ensuring a sustainable platform for our
members post the 6th Community Pharmacy Agreement, and one which is based on
the health of the communities we serve.”