BGEO's Georgia Healthcare acquires GPC for $14m

BGEO Group, the holding company of JSC Bank of Georgia, said one of its subsidiaries has signed a binding memorandum of understanding to buy Georgian pharmacy chain JSC GPC for $14m (£9.9m) in cash.

Georgia Healthcare Group (GHG) will pay 85.7% of the cash consideration upon the signing of a definitive sale and purchase agreement, and the remaining 14.3% on the first anniversary of the deal’s close, which is expected to be in April or May 2017.

GPG is the third largest pharmaceuticals retailer and wholesaler in Georgia, with 15% market share by sales and 96 outlets. In 2015, the group had revenues of GEL191.3m.

BGEO said the acquisition “supports GHG's expansion strategy and its aim to be the leading integrated player in the Georgian healthcare ecosystem of GEL 3.4bn value”.

“It positions GHG as the major purchaser of pharmaceutical products in Georgia, and provides a platform which offers significant synergy potential.”