Chemist Warehouse Uses $5.8 Billion Sigma Merger to Go Public

Australian pharmacy chain Chemist Warehouse has agreed to a deal to go public with a valuation of A$8.8 billion ($5.8 billion) after merging with smaller healthcare supplier Sigma Healthcare Ltd., the companies announced Monday.

Sigma will acquire Melbourne-based Chemist Warehouse via a merger in which it will pay A$700 million cash to the retailer’s owners — who will hold 85.75% of the combined company, with the supplier owning the remainder — Sigma said in a statement.

As part of the deal, Sigma also plans to raise as much as A$400 million to bring in working capital for the new ...