JSE listed retailer Dis-Chem Pharmacies today announced that it had bought Baby City for R430 million in what is one of the biggest deals in a merger starved COVID-19 environment.
Baby City, which is a specialist kids retailer, currently has 33 stores nationwide. The deal will see the inclusion of an in-store Dis-Chem branded clinic in Baby City retail stores.
Ivan Saltzman, Dis- Chem CEO, said the clinics will offer ante and post-natal clinic services aimed at babies and toddlers.
“The acquisition is a great cultural fit and has been a target of ours for many years. The brands and businesses were built with similar philosophies ensuring management team alignment as we take steps to unlock the value we see in the Baby City brand,” said Saltzman.
Saltzman added that Michel Aronoff, who is Baby City’s boss, will continue to serve as managing director of Baby City and current staff will be retained.
Aronoff said both companies share the same ethos and passion inherent in family-founded and run businesses.
“Our trajectory echoes Dis-Chem’s history and growth and we are confident that our shared philosophy of customer-focused quality and service will translate into solid growth for Baby City as part of the Dis-Chem stable,” said Aronoff.
Dis-Chem said there is strong potential to grow Baby City’s store network by opening a further 30 stores in the country.