The move brings the troubled group into the stable with other pharmacy brands such as Priceline and Soul Pattinson Chemist.
Wesfarmers Health has stepped in to acquire the discount pharmacy group Pharmacy 4 Less, following the group’s entry into voluntary administration on 29 April.
The deal, which became effective on 4 June, marks a significant move to stabilise the future of a significant number of franchised and independent pharmacies across Australia.
The Pharmacy 4 Less group supports 53 franchised community pharmacies under the ‘Pharmacy 4 Less’ brand, and 12 franchised community pharmacies under the ‘Your Chemist Shop’ brand, with the majority of stores located in Victoria and NSW. The group also provides services to around 30 independent pharmacies.
The acquisition reinforces Wesfarmers Health’s existing relationship with the group through its pharmacy wholesale arm, Australian Pharmaceutical Industries and ensures continuity of operations for pharmacy owners, staff, and patients.
Wesfarmers Health chief customer officer Richard Pearson emphasised the importance of the acquisition in restoring certainty for the group’s partners.
“Wesfarmers Health recognises the uncertainty these franchise partners have experienced over the past months and we are pleased to acquire the business,” he said.
“With more stable financial support, we see good growth potential for Pharmacy 4 Less’s brands and stores and look forward to working with the franchise partners.”
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Pharmacy 4 Less Top Ryde franchise partner, Kamal Kotb, said he supported “Wesfarmers Health stepping-in to back our community pharmacies and the Pharmacy 4 Less brand at this critical time”.
“We look forward to working with the Wesfarmers Health team so that we can continue to service the health and care needs of our customers and community,” he said.
The acquisition is expected to consolidate wholesale volumes for API, while preserving jobs and services in key metropolitan and regional areas.
The Pharmacy 4 Less group had been facing financial challenges leading to its entry into administration earlier this year.
Wesfarmers’ health division was formed in March 2022, with the acquisition of API, and includes 73 company-owned Priceline stores, 396 Priceline pharmacy franchise stores and 89 Clear Skincare clinics, as well as a wholesale pharmaceutical goods distribution arm.
In 2023, Wesfarmers Health expanded its digital and medical aesthetics offering with the acquisitions of telehealth provider InstantScripts, as well as the SILK Group, who operates a network of around 140 wholly owned, joint venture and franchised clinics. The division employs more than 3600 team members.