Sigma and CWG Merger Risks and Management Overview
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Transformational Merger of Sigma and CWG
Sigma and CWG to combine to create a leading healthcare wholesaler, distributor and retail pharmacy franchisor
A transformational and compelling transaction for both companies
Sigma
Healthcare
Stop Paying Too Much!!
CHEMIST Group
WAREHOUSE
Creation of a full-service wholesaler, distributor and retail pharmacy franchisor
Combines Sigma's extensive and state-of-the-art distribution infrastructure with
CWG's leading retailing know-how
National full line
pharmaceutical wholesaler
Supplies over 1,000 aligned
pharmacies, including 340
under the Amcal and Discount
Drug Stores banner brands
State-of-the-art distribution
infrastructure following
completion of $400m capital
investment program
+
•
•
A leading retail pharmacy
franchisor
Supports a multi-national Retail
Network of ~600 pharmacies in
Australia, New Zealand, China
and Ireland
Chemist Warehouse brand is
amongst Australia's leading
retail brands
Aggregate annual historical MergeCo EBIT >$495m¹, before synergies
Significant potential for synergies – c.$60m p.a. of cost synergies expected²
Highly experienced management team and Board
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25
Notes:
1.
234
Greater scale, investor interest and balance sheet strength - indicative MergeCo
market capitalisation >$8.8bn³ and expected to be eligible to sit well within the
S&P/ASX200 following quarterly re-balancing4
12 months to June 2023 in the case of CWG and 12 months to July 2023 in the case of Sigma. Shown on an aggregated basis and does not take into account intercompany adjustments. Refer to page 42 for further detail. This is based on historical financial information of CWG and
Sigma and is given for illustrative purposes only and should not be relied upon as Sigma's views on its future financial performance following completion of the Proposed Merger. There has been no alignment of the financial year ends of Sigma and CWG to present the aggregated
MergeCo financial information. Year-end reporting periods will be aligned post implementation of the Proposed Merger
On a run-rate basis. Synergies expected to be achieved four years post completion of the Proposed Merger. One-off costs to achieve estimated at c.$75m. Refer to page 28 for further detail
Based on estimated MergeCo shares at completion of the Proposed Merger of 11.6 billion (including shares issued in the $400 million capital raising announced today) and based on Sigma's last traded price of $0.7625/sh on 6 December 2023.
Refer to the notes on page 30 of this presentation for further detailView entire presentation