Double Advantage Points for Boots in their push into Latin America?

Yesterday saw the announcement by Alliance Boots, the global pharmacy, health and beauty retailer, that they are paying around $750m to buy 100% of Farmacias Ahumada (FASA), the Chile-based pharmacy operator.

This acquisition opens the way in to the growing Latin American market for the Swiss headquartered company, as FASA operates the third largest retail pharmacy in both Chile and Mexico, with a combined total of around 1,400 stores and collective revenues reported to be in the region of $1.42bn. The aptly named "Chain Drug Review" reports that the "Latin American market recently has drawn rising interest from large pharmacy industry players" and the deals happening would support this statement. Since the middle of March, Zephyr has recorded 6 transactions involving LatAm targets that operate within the pharmaceutical retail/wholesale space totalling just under $1.1bn.

Whilst the Alliance Boots/FASA deal is the first to have involved a European heavyweight, one can assume that others will soon be looking more closely at the region as well.