Siam Health Co, the maker of Smooth E skincare and Dentiste toothpaste, has acquired a 90% stake in P&F Integrate Co, the operator of P&F drugstores, for 200 million baht in a move to diversify the business.
Sangsuk Pithayanukul, the company's chief executive, said the transaction is expected to be completed next month.
Once the deal is finalised, Mr Sangsuk said the company plans to increase the number of P&F stores to 120 within the next two years from 75 at present and will boost the number of P&F stores to 800 within the next four years.
The company plans to have at least one P&F store in each province and open one store in each district.
Under the plan, Siam Health will spend 1.6 billion baht during a four-year expansion. Funds will largely stem from loans.
After the four-year expansion plan, the company will list on the Stock Exchange of Thailand to raise an estimated 1.6 billion baht worth of proceeds to finance the opening of another 800 new P&F stores by 2026, Mr Sangsuk said.
The company is now in talks with potential partners in South Korea and Japan to form joint ventures and co-expand P&F drugstores in Thailand.
"We want P&F to become the pharmaceuticals of choice and become a top-of-mind brand for Thais within 12 months," Mr Sangsuk said, adding that apart from selling pharmaceutical products, the company plans to provide clinical services at about 30 P&F stores every Tuesday and Friday.
The company is targeting high- and middle-income earners, those aged 40-plus and those concerned about their health.
Mr Sangsuk earlier operated his own drugstore before he began making his own skincare and toothpaste.
"Despite making money from skincare products, I was not as happy as I was owning a small pharmaceutical store," he said. "Therefore, I am returning to the pharmaceutical business this year."
According to the Public Health Ministry, there were 22,000-23,000 drugstores nationwide in 2018. The five big chains are Save Drug of Bangkok Hospital, Health Up, Fasino, Bangkok Drug Store and P&F.
Thailand's health and beauty business is estimated to be worth 250 billion baht, while the pharmaceutical business is valued at 180 billion baht, 30 billion of which is from the drugstore channel and the remaining 150 billion from hospitals.
Under the four-year plan, Siam Health aims for sales of 25 billion baht from P&F drugstores.
Last year, P&F's sales totalled 700 million baht.