Sigma Healthcare (ASX:SIG) said Tuesday signed a memorandum of understanding with Greenlight Healthcare, under which the Chemist Warehouse brand will enter the UK market.
The company said in a statement that it will acquire a 75% interest in a number of stores of the employee-owned pharmacy group, with 25% continuing to be held by GreenLight.
Sigma will license the Chemist Warehouse brand and intellectual property, and provide retail support, while GreenLight will provide the dispensary and professional services requirements as well as back office support.
The first phase of the joint venture will focus on rebranding and developing up to five stores initially, with the first site to be in Hoxton Street, northeast of the city of London. If the first phase proves to be successful, more stores could be developed in the second phase. The parties plan to identify existing GreenLight pharmacies and where appropriate develop or relocate these into Chemist Warehouse stores.
Sigma Healthcare's shares rose nearly 4% in recent trading on Tuesday.