SYDNEY, AUSTRALIA: ParagonCare, a leading provider of healthcare equipment and services, has agreed to merge with CH2, a national distributor of pharmaceuticals and medical products, in a deal worth $201.5 million.

The merger will create a diversified and complementary healthcare distribution and wholesaling group, with combined revenues of $3.3 billion and EBITDA of $93 million for FY24.

The merger will also enable the expansion of both companies’ product offerings and geographic reach across Australia, New Zealand and Asia, leveraging their respective operational capabilities and customer relationships.

ParagonCare will acquire all of the issued share capital in CH2 in exchange for issuing 943.5 million shares in ParagonCare, representing 57% of its issued shares post the merger.

The merger is subject to the approval of ParagonCare shareholders and an independent expert’s opinion, and is expected to be completed by late May 2024.

John Walstab, managing director and CEO of ParagonCare, said the merger was a strategic move to capitalise on the growth opportunities in the healthcare sector and enhance shareholder value.

“ParagonCare and CH2 have a strong strategic fit and a shared vision to provide innovative and quality healthcare solutions to our customers. This merger will create a healthcare distribution powerhouse that will benefit from greater scale, synergies and market presence,” he said.