Sigma: Chemist Warehouse and Sigma union sees $31.8bn ASX debut
Deal News | Feb 14, 2025 | EIN
Sigma Healthcare and Chemist Warehouse have completed their merger, with the combined entity now holding a market capitalization of approximately $31.8 billion. This deal sees Sigma owning all shares in CW Group Holdings Limited (Chemist Warehouse) and listing on the ASX. The merger boosts Sigma's presence, merging its brands of Discount Drug Stores and Amcal with Chemist Warehouse's large retail network. Share volatility is anticipated as institutional demand meets shareholder selling. Sigma's upcoming inclusion in major indices could drive further demand for its shares. Meanwhile, the broader ASX healthcare sector faced challenges, with CSL and Cochlear reporting results perceived as weak, affecting their share prices. CSL reported a 7% increase in NPAT, missing estimates but maintaining guidance. Cochlear's moderate revenue growth faced counter pressures due to slow product uptake. Pro Medicus delivered mixed results with higher NPAT amidst revenue shortfalls. Expectations remain positive for EBOS ahead of its half-year results despite the loss of a key contract. Ansell announced robust earnings exceeding forecasts, although future concerns linger. Clever Culture Systems reached cash flow break-even and anticipates continued financial improvements.
Sectors
- Healthcare
- Pharmaceuticals
- Stock Market
Geography
- Australia – The article focuses on Australian companies like Sigma Healthcare, Chemist Warehouse, CSL, Cochlear, and others, relevant to the local stock exchange and market dynamics.
Industry
- Healthcare – The article discusses significant activities in the healthcare sector, particularly involving pharmaceutical distributors and healthcare product companies.
- Pharmaceuticals – The merger between Sigma Healthcare and Chemist Warehouse highlights activities in the pharmaceutical distribution industry.
- Stock Market – The article mentions several companies listed on the ASX and discusses stock price movements and market capitalization values.
Financials
- $31.8 billion – The market capitalization of Sigma Healthcare following the merger with Chemist Warehouse.
- $3 – Target price for Sigma Healthcare shares set by Morgans after the merger.
- $2.01 billion – Net profit after tax for CSL in the first half, up 7% on a constant currency basis.
- $8.48 billion – CSL's revenue for the first half.
- A$51.7 million – Net profit after tax for Pro Medicus in H1 FY25.
- 25 cents per share – Dividend declared by Pro Medicus.
- $500,000 – Positive operating cash flow for Clever Culture Systems in Q2 FY25.
- US$81 million – Net profit after tax for Ansell in H1 FY25.
- $55 million – A composite estimated potential demand for Sigma shares following inclusion in indices.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sigma Healthcare | Acquiring Company | Company | Sigma Healthcare is a pharmaceutical distributor and retail pharmacy operator involved in a merger with Chemist Warehouse. |
| Chemist Warehouse | Target Company | Company | Chemist Warehouse is a well-known Australian pharmacy chain merged with Sigma Healthcare. |
| CW Group Holdings Limited | Selling Company | Company | The holding company for Chemist Warehouse, selling its shares to Sigma Healthcare in the merger. |
| Morgans Financial | Corporate Finance Advisor | Company | Investment and advisory firm providing analysis and forecasts on the merger and involved healthcare companies. |
| Scott Power | Analyst | Person | Senior analyst with Morgans Financial providing insights on the healthcare market and Sigma's potential future. |
| CSL (ASX:CSL) | Other Company | Company | Australian biotechnology company notable for its earnings report impacting the healthcare index. |
| Cochlear (ASX:COH) | Other Company | Company | Global leader in implantable hearing solutions, impacted by earnings reporting. |
| EBOS Group (ASX:EBO) | Other Company | Company | Pharmaceutical distributor set to release its half-yearly results. |
| Ansell (ASX:ANN) | Other Company | Company | Producer of personal protective equipment discussed for its better-than-expected financial results. |
| Clever Culture Systems (ASX:CC5) | Other Company | Company | Life sciences company achieving cash flow break-even and securing contracts with AstraZeneca. |
| Pro Medicus (ASX:PME) | Other Company | Company | Healthcare technology company reporting mixed financial outcomes. |