Shufersal mulls buying New-Pharm

Supermarket chain Shufersal Ltd. (TASE:SAE) notified the Tel Aviv Stock Exchange this morning that it had begun an initial feasibility study of the possible acquisition of New-Pharm Drugstores Ltd. from New Hamashbir Lazarchan Ltd. (TASE:MSZB).

New-Pharm was founded in 1992, and operates 67 branches that, besides containing pharmacies, sell cosmetics, toiletries, baby products, household wares, natural healthcare products, and so on.

Shufersal stresses that its move amounts to "preliminary and initial inquiries only, relating to, among other things, antitrust issues," adding that, "there is no certainty that these inquiries will lead to understandings between the parties or that any agreement between them will be signed."

According to Hamashbir's financials, the New-Pharm chain recorded a 7.5% rise in sales in the first nine months of 2016 to NIS 545 million, although operating profits before management charges fell by 90% to NIS 1 million.

In 2015, talks took place between the Hamashbir group and businessman Yair Philip on a sale of New-Pharm, but in the end no deal was agreed.

Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2017

Shufersal mulls buying New-Pharm

Shufersal says that it is conducting "preliminary inquiries" only for a possible purchase of drugstore chain New-Pharm from Hamashbir.