(Ecofin Agency) - South Africa’s pharmaceutical group Dis-Chem announced it has entered in talks to buy the baby care product retailer Baby City. The group, co-founded in 1978 by Ivan and Lynette Saltzman, proposes to pay R430 million ($23.2 million) for the acquisition.
The transaction includes a loan to Baby City's shareholders and a guarantee to ensure the company's liquidity in a context marked by the spread of the covid-19 pandemic. The closing of the transaction is subject to the approval of the South African Competition Authority and is expected to take place by the end of October 2020.
At the end of this process, the 33 stores operated by Baby City will be integrated into Dis-Chem's supply chain. Michel Aronoff will retain his position as Baby City's Chief Executive Officer. The company he manages achieved a turnover of R855 million in the financial year ending February 2020.