The two South African brothers who just inherited R6.8 billion from a pharmaceutical empire

This is according to a Stock Exchange News Service (SENS) announcement by the company on Friday (20 June). 

The 217 million shares represent over a quarter of the JSE-listed company and mark a significant shift in the family’s holding structure.

The transaction forms part of a broader restructuring by Ivan and Lynette, who founded Dis-Chem in 1978 and built it into one of South Africa’s leading pharmaceutical retailers.

Prior to the deal, the family investment vehicle, Ivlyn, held a 29.31% stake in the company. Following the share distribution, Ivlyn’s interest has decreased substantially to 4.06%.

Despite the shift, Dis-Chem confirmed that the shares remain within the Saltzman family, maintaining the existing family ownership structure. 

“The transaction will not affect the liquidity of the company’s shares traded on the JSE,” the company said. 

Dan and Mark Saltzman now each hold a 12.62% beneficial interest in the company (R3.4 billion each), up from previously having no interest.

While Dan and Mark do not currently serve on the board or hold executive positions, their substantial new shareholding could lead to changes in the group’s governance structure.

However, their brother, Saul Saltzman, remains deeply involved. With 20 years of experience at Dis-Chem, he serves as an executive director and has led several key divisions, including imports and the private label strategy.

The restructuring follows a wave of share sales by the Saltzman family and other executives in 2024, which analysts believe could signal a generational shift within the company. 

Ivan Saltzman stepped down as CEO in 2023 after 45 years, succeeded by Rui Morais, formerly the company’s CFO. 

In addition to the share distribution, Saul Saltzman sold over R120 million worth of shares last year, while executive director Stan Goetsch offloaded more than R300 million.

A South African pharmaceutical empire 

In 1978, Ivan and Lynette Saltzman opened a small pharmacy in Mondeor, Johannesburg, with a R10,000 capital investment. 

Frustrated by how the pharmacy operated while working as a locum there, Ivan saw potential and bought the business. 

This marked the beginning of what would become Dis-Chem, one of South Africa’s largest and most recognisable pharmacy retail brands.

Ivan, born in 1950 in Port Elizabeth, met Lynette while studying pharmacy at the University of the Witwatersrand. 

When they began working together, they were determined to do things differently. “In the beginning, we had the same start, the same products, and the same prices as all the other pharmacies,” Ivan said.

To stand out, they began offering a broader range of products, introducing everything from earrings to health supplements. This pivot attracted customers and helped them turn a profit almost immediately.

By 1984, they had opened their second store in Randridge Mall, despite widespread reluctance from others to commit to the new shopping centre. 

Their model of discounting medicines and expanding product offerings proved successful. During the late 1980s and 1990s, Dis-Chem expanded rapidly in Johannesburg and Pretoria. 

Lynette took on a growing role, eventually running the Fourways store with a then-unheard-of R2 million monthly turnover. 

She led the beauty category, helping to build Dis-Chem into one of South Africa’s top beauty destinations.

The 1990s and early 2000s saw aggressive growth. Dis-Chem introduced private-label products in 1997 and launched the Dis-Chem Foundation in 2006.

By 2016, the company had 100 stores and R15.5 billion in revenue. 

That same year, Dis-Chem listed on the Johannesburg Stock Exchange, a move that Ivan described as “an important next phase” of the company’s growth. He and Lynette remained committed to leading the business.

Dis-Chem has since continued its expansion. By 2025, the company had 330 stores, including 285 pharmacies and 45 baby outlets, and a market cap of R27 billion. 

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/business/828938/the-two-south-african-brothers-who-just-inherited-r6-8-billion-from-a-pharmaceutical-empire/