(Adds stake distribution in the second paragraph.)
Aug. 30 (Bloomberg) -- Drogarias Pacheco SA agreed to buy Drogaria Sao Paulo SA to create Brazil’s largest drugstore chain with annual revenue of about $2.8 billion.
The two companies will merge into Drogarias DPSP SA, according to a statement today. Grupo Barata, owner of Pacheco, will have more than 50 percent of a new company, according to a person familiar with the deal. Drogaria DPSP is worth 5 billion reais ($3.13 billion), said the person, who asked to stay anonymous because he isn’t authorized to speak publicly.
The two drugstores said they’ll keep operating under two brands. Drogaria DPSP starts with 691 stores and combined gross revenue of 4.4 billion reais in the 12 months to June, according to the statement.
DPSP management will be shared by Pacheco’s Grupo Barata and Grupo Carvalho, owner of Drogaria Sao Paulo, according to the statement. Samuel Barata is to become chairman while Drogaria Sao Paulo Chief Executive Officer Gilberto Martins Ferreira will serve as CEO.
Patria Investimentos and law firm Machado, Meyer, Sendacz, Opice assisted Drogaria Sao Paulo while Banco Espirito Santo and Pinheiro Neto advised Drogaria Pacheco in the deal.
An external press official working for both companies declined to comment the deal when contacted by Bloomberg.
--Editors: José Sergio Osse, Adriana Arai
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