BWX Ltd (ASX: BWX) shares are sliding this morning after the company announced that the first tranche of shares pertaining to its deal with Chemist Warehouse Group have been issued. At the time of writing, the BWX share price has dipped 1.37% to $4.33.
However, the BWX share price jumped 11.44% in February, including 10.95% on the day it first announced the Chemist Warehouse partnership last month. Let's take a look at what the company has been up to.
BWX share price shoots on Chemist Warehouse deal
The five-year deal that sent the BWX share price soaring resulted in the company's entire line of products being available through Chemist Warehouse online stores in Australia, New Zealand and Ireland.
BWX's brands include Sukin, Andalou, Mineral Fusion and private-label brand Life Basics.
As part of the arrangement, Chemist Warehouse will also now formally launch Mineral Fusion products in the Asia Pacific market and Andalou products will receive increased shelf space.
According to the Australian Financial Review, BWX has also teamed up with a British-based e-commerce company to support growth in Europe.
Chemist Warehouse IPO
The BWX arrangement comes as Chemist Warehouse reportedly preps for an initial public offering (IPO).
Originally reported by The Australian Financial Review (AFR), my Fool colleague Brendon Lau covered the rumoured Chemist Warehouse IPO last month, reporting that a valuation has yet to be released.
The AFR put a $5 billion or better bet on what it believes the Chemist Warehouse IPO will fetch.
Chemist Warehouse is the biggest pharmacy chain in Australia and earns an estimated $5 billion in annual sales.
Commenting on the partnership with BWX, Chemist Warehouse chair and co-founder Jack Gance said:
I have always been a keen observer of the BWX brands and have seen their steady growth. Being a strategic partner means we can work in a more collaborative way to do everything possible to unlock growth both here in Australia and in our extensive online channels and overseas markets…
BWX share price snapshot
The BWX share price has risen by around 4% year to date and by more than 13% over the last year.
Based on the current BWX share price, the company commands a market capitalisation of approximately $613 million with 139.5 million outstanding shares.
