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Investors queried over Symbion-Ebos merger
PUBLISHED: 0 hour 20 MINUTES AGO | UPDATE: 0 hour 15 MINUTES AGO
Sarah Thompson and Carrie LaFrenz Speculation is mounting that Melbourne-based pharmaceutical wholesaler Symbion is considering a merger with New Zealand-listed Ebos Group that could see a combined business pursue an Australian listing.It’s understood Australian investors have been sounded out about the opportunity to invest in the entity, with sources suggesting it could raise about $300 million in an Australian initial public offering.Ebos is a medical device company which has an animal care business called Masterpet Group. Ebos posted $46.9 million in earnings before interest, tax, depreciation and amortisation for the 2011-12 fiscal year, revenue was $NZ1.42 billion and net profit was $NZ27.9 million.The local arm of Hong Kong-based conglomerate Zuellig Group bought Symbion Pharmacy Services for $505 million in 2008, after Primary Health Care’s $2.65 billion acquisition of Symbion Health. This was Zuellig’s first foray into the Australian healthcare market.At the annual meeting last year, Ebos chairman Rick Christie said the company planned to further grow by acquisition.An industry source said it made sense for the two companies to get together, although he was not convinced about Zuellig’s gain."Ebos I know want a broader Aussie footprint but I can’t see them doing this unless they can control the new company. Symbion would effectively become Ebos Australia."The two businesses from an overlap perspective makes sense, but not sure the play for Zuellig as it gives them a smaller potion of a bigger business."The Zuellig is a major shareholder of Kiwi retail pharmacy group PharmacyBrands.It is a NZ-only listed retail pharmacy group and incorporates the Life, Unichem, Amcal, Care and Radius brands.The industry source said if a merger were to move ahead he did not believe there would be a dramatic impact on Australia’s pharmaceutical landscape.If a deal was successful it would have to be a related party transaction as Zuellig holds a small stake in Ebos. It’s also likely that a merged entity would be run by Symbion chief executive Patrick Davies.Mr Davies was unavailable for comment on Tuesday, while a spokesperson "declined to comment on speculation".Ebos chief executive Mark Waller and chairman Rick Christie both were unavailable for comment. Zuellig did not respond to calls.