China BCT Pharmacy Group Inc., a pharmaceutical distribution, retailing and manufacturing company in China, today announced it has expanded its retail network throughout Guangxi province with the addition of 33 new retail pharmaceutical stores. Through its three subsidiaries, the company now operates 170 pharmacies.
Hui Tian Tang, chairman and CEO of China BCT, said the company has successfully increased its market presence in Guangxi through strategic acquisition and that it will continue to seek out additional growth opportunities.
“We continue to successfully execute on our strategy of selectively acquiring drugstore chains and independently operated pharmacies that complement our existing network of stores in populated rural areas. We have significantly strengthened our presence in Guangxi province, and intend to continue to expand our footprint in the region while simultaneously evaluating attractive growth opportunities outside the province,” Tang stated in the press release. “By integrating newly acquired stores into our current distribution network, we expect to realize meaningful operational and financial benefits that will enhance long-term shareholder value.”
The recent expansion project was executed through two separate transactions in September 2010, the first of which centered on subsidiary Guangxi Liuzhou Baicaotang Medicine Retail Lt. (BCT Retail). BCT Retail acquired 15 retail pharmacy stores for $0.70 million. The stores are expected to generate annual revenue of approximately $2.2 million, $0.6 million of which will contribute to China BCT’s top-line in 2010.
In the second transaction, BCT Retail acquired 18 retail pharmacy stores for approximately $0.88 million. China BCT said it expects these stores to generate annual revenue of roughly $2.6 million and to contribute approximately $0.7 million to the company’s top-line in 2010.
China BCT said it plans to spend approximately $7,000 worth of renovations on each of the new pharmacies through October. Operating under the brand “Baicaotang,” each store is expected to generate operating margins of approximately 15 percent.
For more information visit www.china-bct.com
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