Healthcare group Netcare today announced a long-term agreement to outsource its 37 retail pharmacies in Medicross medical and dental clinics and 51 Netcare hospital retail front shop operations to Clicks.
Richard Friedland, chief executive officer of Netcare, said: “We believe the outsourcing relationship with an experienced retail provider of the calibre of Clicks will enable us to provide an enhanced retail offering to patients, staff and consumers.”
Clicks will take over all Medicross pharmacies and the retail front shops of the Netcare hospital division. The agreement excludes the dispensing of prescriptions in the Netcare hospital pharmacies which remain within Netcare’s hospital operations.
David Kneale, chief executive officer of Clicks Group, said: “We welcome the opportunity to be the retail pharmacy partner of a healthcare group of Netcare’s stature. This agreement will extend Clicks’ retail pharmacy presence and we will be rebranding the Medicross pharmacies and Netcare front shops to Clicks.”
Friedland said specific staff members in Medicross and the retail front shops in the hospitals will be transferred to Clicks on terms similar to their current conditions of employment and any staff members indirectly affected will be retained in the business, thus confirming that there would be no loss of jobs as a result of the transaction.
The outsourcing agreement is expected to be implemented from 1 October 2016, subject to various conditions precedent and regulatory approvals, including that of the Competition Commission. The transaction will have no material impact on the earnings and financial positions of either company.
Netcare: Martina Nicholson 083 631 6647
Clicks Group: Graeme Lillie 082 468 1507