China Nepstar Chain Drugstore Ltd. (NPD) on Thursday said that it has entered into a definitive agreement with DongGuan Hui Ren Tang Pharmaceutical Co. Ltd. to acquire all of its 18 directly operated chain drugstores in Dongguan City, Guangdong Province for cash consideration of RMB2.3 million or US$0.3 million. This acquisition will bring the total number of China Nepstar drugstores in Dongguan to over 120 by the end of March.
The 18 drugstores operated by Dongguan HRT generated total revenue of RMB12 million or US$1.65 million in 2007. These stores are mostly located in the Da Lang, Cha Shan and Da Ling Shan districts in Dongguan. China Nepstar expects to take over the operations of the 18 stores in the first half of March. China Nepstar plans to inventory these stores with its own merchandise and will gradually re-brand the stores.
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