Wesfarmers to buy API in $764m deal

Wesfarmers has agreed to purchase ASX-listed Australian Pharmaceutical Industries for $1.55 per share, a 22 per cent premium on Wednesday’s closing price in a deal valued at $764 million.

The Bunnings Warehouse parent company has entered a process deed with API to acquire all of its shares in a deal that has the support of the pharma group’s board and its largest shareholder, Washington H Soul Pattinson.

The deal marks an increase from the $1.38 per share offered two months ago that was rejected by API.

“If the proposal is successful, we see opportunities to invest to strengthen the competitive position of API and its community pharmacy partners by expanding ranges, improving supply chain capabilities and enhancing the online experience for customers,” said Rob Scott, Wesfarmers chief executive.

“API would also provide the basis of a new Healthcare division of Wesfarmers and a platform from which to invest and develop capabilities in the growing health, wellbeing and beauty sector,” he said.

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