The highly successful Chemist Warehouse empire rose from humble beginnings before its owners became billionaires through a recent merger with the company's supplier.
Mario Verrocchi met brothers Jack and Sam Gance in Melbourne's northern suburb of Reservoir after graduating from the University of South Australia with a pharmacy degree.
The Gances bought their first pharmacy in Reservoir in 1972, and three years later another 1,000 feet away in an area chock-full of European migrants.
Mr Verrocchi said a “beautiful relationship” has been forged between the men, who have all become billionaires after it was confirmed on Monday that Chemist Warehouse has carried out a reverse takeover of ASX-listed Sigma in a huge deal.
Co-founder of retail giant Pharmacy Warehouse Mario Verrocchi (right) has detailed the company's humble beginnings in Melbourne's northern suburbs
Pharmacy Warehouse has more than 600 stores in Australia, New Zealand, Ireland and China
With an estimated market capitalization of $8.8 billion, the combined company would be among Australia's 100 largest and easily qualify for the ASX200.
Mr Verrocchi found it difficult to get his first job until Sam asked him if he spoke Italian, to which he replied 'yes'.
“And he said you might be my son (intern). He said no at the time, but later called me back and said yes,” he said The Australian.
“That started a beautiful relationship from that moment on.”
Chemist Warehouse Group now has annual sales of almost $7.9 billion from more than 600 stores in Australia, New Zealand, Ireland and China.
The Verrocchi and Gance families will emerge from the Sigma deal with a combined $5 billion in cash and stock.
Chemist Warehouse shareholders will own 85.75 percent of the merged company, a deal that must be approved by the Australian Competition and Consumer Commission.
Sam Gance (right) has become a billionaire after Chemist Warehouse merged with its supplier Sigma on Monday
Mr. Verrocchi and the Gance brothers will own approximately 49 percent of the combined entity's shares.
It is understood that Mr Verrocchi's stake will be worth almost $2 billion, and the two Gance siblings will have about $2.3 billion worth of shares.
When asked if he was ready for public scrutiny in a listed entity, Mr Verrocchi replied: 'No!'.
“The truth is, it's just not who I am, and Jack (Gance) is pretty much the same. “We spent 50 years with our heads down and our heads down doing what we needed to do,” he said.
Having access to public market capital will fuel Chemist Warehouse's future growth and Mr Verrocchi believes there is further room for expansion in Australia, both in physical stores and online.
Mr Verrocchi said succession planning could also be part of the going public strategy, although the families planned to stay in the business long term.
Jack Gance (pictured) will own a stake in shares worth $2.3 billion with his brother Sam
“I've been doing this for a long time and I'm nearing the end of my time,” he said.
“If you're a responsible CEO or founder, you have to create the next thing and the people who have followed you are at a time in their lives, in their 40s or 50s, where they can leave a path for the next people.
“But just when you think everything is done, you realize this is just the beginning. And that's kind of the case here.'
The merger with Sigma is expected to close in the second half of 2024, subject to regulatory approval.