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FOR IMMEDIATE RELEASE
[Hong Kong, 12 July 2004] Watson's Personal Care Stores Sdn Bhd (Watsons Malaysia), the Malaysian unit of Hong Kong-based A.S. Watson Group (ASW), today announced the proposed acquisition of Apex Pharmacy Sdn Bhd (Apex Pharmacy) from Apex Healthcare Bhd (AHB), a Bursa Malaysia main board-listed company.
Watsons Malaysia will also license from AHB the exclusive right to use the 'Apex Pharmacy' trade name for its pharmacy operations in Malaysia to leverage its strong brand equity and large customer base.
The acquisition of the Apex Pharmacy retail business costing approximately RM14 million is a strategic move to further strengthen Watsons retail presence in health and beauty in Malaysia, in line with ASW's international strength and strategy to expand the Group's portfolio in Asia and Europe. Following the acquisition, Watsons Malaysia will take full ownership of 24 Apex Pharmacy stores nationwide.
Andrew Miles, Chief Executive Officer for Health & Beauty Asia, A.S. Watson Group, said: "This strategic move will strengthen our presence in Malaysia by expanding the total number of Watsons stores to over 100, resulting in an immediate and significant growth in our market share. With this acquisition, we will be in a strong position to become the leading retail chain in the Malaysian health and beauty market.
"The deal will boost our pharmacy business via an enlarged chain of 33 pharmacy counters, and will also enhance Watsons' staff strength to over 1,000. It will increase our sales and purchase volumes, and benefit consumers through competitive pricing and a wider selection of merchandise, made possible by the greater economies of scale. Specifically, the enlarged pharmacy business is expected to be the new source of growth in revenue and profitability for the merged operations.
"Watsons will invest a further RM3.5 million to refurbish the 24 stores after the completion of the acquisition. The exercise will include changes and improvements to store signage, layouts and fittings," he added.
Established in 1962 with its first store in Melaka, Apex Pharmacy successfully established itself in the Malaysian retail pharmacy market as a community and family-oriented pharmacy. Apex Pharmacy's network now spans the Klang Valley, Perak, Negeri Sembilan, Johor and East Malaysia.
Dr Kee Kirk Chin, Managing Director of AHB, said: "We are pleased that the Apex Pharmacy retail brand will now come under the care of a world-leading chain in the health and beauty business. Apex Healthcare will now focus its resources on the company's core manufacturing and distribution operations, which has been the bedrock of its strong growth since the company's listing on Bursa Malaysia in 2000."
The proposed acquisition is subject to approval from Malaysia's Foreign Investment Committee and other conditions.
About Watsons Your Personal Store
Established in 1828, Watsons Your Personal Store (Watsons) is the largest personal care retail chain in Asia operating over 770 stores in eight markets namely China, Hong Kong, Macau, Malaysia, the Philippines, Singapore, Taiwan and Thailand.
In Malaysia, Watsons operates 77 stores with 800 employees. As a leading chain in the market, nine of its Watsons stores have licensed pharmacy counters.
Watsons is a member of the A.S. Watson Group. A.S. Watson is an international retail and manufacturing business with operations in 18 markets across Asia and Europe. It has a network of 13 retail chains and employs over 64,000 people. A wholly-owned subsidiary of Hong Kong-based conglomerate Hutchison Whampoa Limited, A.S. Watson reported turnover was HKD 63,086 million (approx. US 8,088 million) in 2003.
For more information, please visit www.aswatson.com
About Apex Pharmacy
Established in 1962 with its first store in Melaka, Apex Pharmacy has successfully become a trusted community and family-oriented pharmacy. It is committed to provide quality products, professional advice and friendly service to enhance the quality of life for Malaysians.
Apex offers a comprehensive range of high quality pharmaceutical products, including medication (prescribed & over-the-counter), health food and vitamins, as well as rehabilitative products such as walking aids and wheelchairs. Besides, Apex also carries personal care products such as cosmetics and toiletries, and provides health consultation to customers.
Apex network now spans the Klang Valley, Perak, Negeri Sembilan, Johor and East Malaysia.
Apex is a subsidiary of Apex Healthcare Bhd (AHB), a Bursa Malaysia (formerly known as Kular Lumpur Stock Exchange) main board-listed company. AHB is a vertically integrated pharmaceutical group with core competencies in the development and manufacturing of generic pharmaceuticals, marketing and distribution & retailing of pharmaceuticals and personal healthcare products. AHB today comprises a group of 5 wholly owned subsidiaries possessing 3 core competencies in the pharmaceutical industry. These are manufacturing, distribution and retailing.
For more information, please visit www.ahealth.com.my
The above press release and related photo can be found in our corporate website's News section [www.aswatson.com]
 Watsons Malaysia to acquire Apex Pharmacy to strength its market position in health & beauty |
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