Australia's Wesfarmers buys VC-backed Instascripts for $91m

AVCJ Research has records of three funding rounds for InstantScripts between 2021 and 2023. All were led by Bailador, which contributed AUD 21m in aggregate. One round also featured Perennial Investment Partners. Bailador said in a filing that the sale valuation represented a 25% premium to the current carrying value and that it would generate cash proceeds of AUD 52m with a 64% IRR.

Founded in Melbourne in 2018, InstantScripts provides online subscriptions for more than 300 medications, working through a network of 2,500 pharmacies nationwide. The company also has a team of registered doctors that offer telehealth consultations and referrals to specialists, and it facilitates blood tests, medical certificate issuance, and mental health consultations.

Wesfarmers, which is making the acquisition through Australian Pharmaceutical Industries (API), said that InstantScripts would complement its existing healthcare portfolio – including its pharmacy and skincare networks – as well as supports its efforts in telehealth.

“Over recent years telehealth has emerged as an important service, complementing the care delivered through GP practices, pharmacies and other allied health providers,” said Emily Amos, a managing director at Wesfarmers Health, in a statement.

“Our goal is to make Australians’ health, beauty and wellness experiences simpler, more affordable and easier to access. InstantScripts provides flexible services that are available at short notice and outside of normal consultation hours, and is accessible to patients in remote areas and those who have difficulty visiting a GP.”

Wesfarmers is Australia’s largest conglomerate with interests spanning retail, chemicals, fertiliser, and industrial and safety products. The healthcare division was established last year through the acquisition of API. It comprises more than 470 Priceline Pharmacy stores, 975 Soul Pattinson Chemist outlets, and 80 Clear Skincare clinics, as well as assorted health and personal care brands.

API recently submitted a take-private bid for Silk Laser Clinics, a non-surgical aesthetics business backed by local PE firm Advent Partners, but then declined to match a superior offer from Hong Kong’s EC Healthcare.

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• Topics
• Australasia
• Trade sale
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• Bailador