The Ayala Group has ventured into the affordable generic medicines business in the Philippines by buying a 50 per cent stake in Generika Drugstore, a local franchising healthcare firm with over 500 stores nationwide.
Ayala Corporation’s subsidiary, Ayala Healthcare Holdings Inc had earlier signed the agreement for the acquisition of Generika, from the family of Julien Bello.
The size of the deal was not disclosed.
Bello, together with Generika co-founder Teodoro Ferrer and his group, will continue to hold the remaining 50 percent ownership in Generika. Ferrer shall continue to serve as the president and chief executive officer of the group.
Ayala Corp noted the value of the acquisition was less than 10 per cent of Ayala’s book value.
Mabuhay Capital served as financial advisor to Bello’s group in its transaction with Ayala Healthcare.
Ferrer joined Bello in establishing Generika in 2003 after working over 30 years with Ayala Group of companies. Their goal was to provide option for Filipinos who cannot afford to complete their medication due to the prohibitive cost of branded medicines.
Ayala president and chief operating officer Fernando Zobel de Ayala said they are looking forward to help address gaps in affordable retail healthcare in the country.
“We believe this is an excellent platform for Ayala to reinvent the space and it will serve as foundation for our emerging healthcare portfolio,” Zobel said. “With the combined strengths and management capabilities of Ayala and Generika, we believe we can raise the level of efficiency and accessibility of this platform to better serve Filipino families by providing a wide range of quality medicines at affordable prices.”
Ayala Corporation’s last trading price decreased 0.13 per cent or P1.00 to close at P767.