Updated: CVC Retracts Super-Pharm Deal
The private equity firm was in negotiations to buy a 40% stake in drugstore chain Super-Pharm for a company value of $540 million
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With over $64.5 billion in assets, CVC is the largest private equity fund in Europe. In April, CVC completed the acquisition of one of Poland's biggest convenience store chains, Zabka Polska, for $1.79 billion (€1.5 billion).
With around 4,700 stores in Europe, CVC’s ownership of Zabka Polska was regarded as a potential boon for Super-Pharms global expansion plans. The company is seeing slow progress in the Chinese market, and local competition is eroding the retailer’s profit margins in Israel.
Headquartered in Herzliya, 9 miles north of Tel Aviv, Super-Pharm operates drugstores in Israel, Poland and China. The company's successful expansion in Poland, where it operates 68 branches, was hampered by an April 2017 Polish legislation limiting the number of public pharmacies a single entity can open in the country. Super-Pharm already leased space for additional 15-20 drugstores in Poland, and the legislation is expected to impact the Israeli retailer's future sales.