Leading pharmaceutical distributor China BCT Pharmacy Group, Inc. announced that it has successfully acquired prominent retail pharmacy stores in Laibin City. The move strategically expands the company’s growing pharmaceutical footprint in Guangxi Province, where it is currently based.
Last month, China BCT paid $0.6 million in cash for 11 retail pharmacy stores in Laibin City. China BCT will invest a total of approximately $49,000 to upgrade these stores, which were previously owned by Laibin Teng Fei Pharmaceutical Limited. The renovations will bring the stores up to China BCT’s standards; some projects and upgrades have already begun and all have an estimated completion date in July. The company estimated that the average annual sales per store to be approximately $145,000 and anticipates the payback period to be about 3 years. Management expects these newly acquired stores to contribute approximately $1.0 million to China BCT’s revenues in 2010.
Mr. Hui Tian Tang, Chairman and CEO of China BCT, commented, “Following our recent deals that added an aggregate of 48 retail pharmacy stores, we are pleased to announce another acquisition that expands our pharmacy network in Guangxi Province. We remain confident that we will meet our goal to add a total of 160 pharmacy stores by the end of 2010. We expect the 59 newly acquired stores over the past few months to contribute over $6 million to our revenue this year and better position us to leverage our retail network and increase market penetration.”