Dis-Chem plans to buy Baby City for R430m

Pharmaceutical group Dis-Chem has entered into an agreement to buy Baby City for R430 million.

In a Sens announcement on Friday, Dis-Chem announced it will acquire 100% of the issued share capital in and shareholder claims of the specialist baby retailer, upon closure.

Dis-Chem says it believes there is strong potential to significantly grow the Baby City footprint, which currently has 33 stores in South Africa, by approximately 30 further sites.

It also hopes to have an in-store Dis-Chem-branded clinic in the Baby City stores, should the acquisition be successful.

“The clinics will offer ante- and post-natal clinic services aimed at babies and toddlers. These services will enhance the destination store status of the brand and in turn allow the Dis-Chem clinic infrastructure within its own stores, which currently offer these services, to handle the growth it is seeing in primary care clinics services volume,” Dis-Chem says.

Ivan Saltzman, Dis-Chem’s CEO says its had its eye on Baby City for years.

“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,” Saltzman says.

Michel Aronoff, who conceptualised and strategised Baby City’s direction, will continue to serve as managing director of Baby City and current staff will be retained.