Drogaria Sao Paulo becomes biggest drugstore of the country
O Estado de S. Paulo
Drogaria São Paulo announced yesterday the acquisition of its rival Drogão, resuming the leading position in the sector for the Ceará-based Pague Menos in 2007. Based on the earnings registered by the companies last year, Drogaria São Paulo has reached now an income of nearly R$ 2 billion (US$ 1.1 billion). The expectation for 2010 is to get to R$ 2.5 billion (US$ 1.4 billion). The value of the transaction was not disclosed, but only 25% of the total was paid in cash. The negotiation also involved shares of Drogaria São Paulo that now belong to two shareholders of Drogão. One of them, Paulo Guimarães, will take a seat in the Board of Directors of the acquiring company.
With the acquisition, the main goal of Drogaria São Paulo is to make its financial numbers more robust -and attractive for investors. According to the plans of Ronaldo de Carvalho, controller and Chairman of the Board of the company, the IPO should occur between 2011 and 2012. "We wanted to do the IPO two years ago. We didn't do it because of the crisis", he said. "We are ready. When we decide to do it, it will take 90 days to put up the operation". The company professionalized its management in 2001 and it audits its results since 1999.
In the next seven months, the brand of the 72 Drogão stores will be replaced by that of Drogaria São Paulo. "The brand Drogaria São Paulo is stronger and has greater consumer confidence. The stores also sell more", says Carvalho. The business model of Drogão will also be replaced by that of the acquiring company. Until the end of the year, Drogaria Sao Paulo intends to open 34 new stores. The expansion should take place in the States of São Paulo, Minas Gerais and Rio de Janeiro. "We are also alert to new acquisitions", says Gilberto Ferreira, President of the company.