Alliance Boots is set to acquire two pharmacy chains in Latin America, adding 1,400 stores to its estate.

The pharmaceutical group, which owns health and beauty retailer Boots, has signed an agreement to buy Farmacias Ahumada (FASA), which is made up of two retailers Farmacias Benavides and Farmacias Ahumada, for £375m.

The businesses generate £835m annually.

Farmacias Benavides is the third largest retail pharmacy chain in Mexico, operating 1,000 stores, while Farmacias Ahumada is one of the three largest retail pharmacy chains in Chile with 400 stores.

The transaction is expected to complete in the third quarter of 2014.

Alliance Boots executive chairman Stefano Pessina said: “This acquisition will give Alliance Boots a major presence in the attractive Latin American market, one of our priority areas for investment. It is also a further step towards reaching a truly global footprint.

“The well-positioned retail pharmacy businesses of Farmacias Ahumada and Farmacias Benavides will be great additions to our group’s unique portfolio of retail, product and service brands around the world.

“We are confident in the high potential for sustainable growth and value generation that will be unlocked by this acquisition, including the opportunity for consumers in Mexico and Chile to access for the first time leading Boots product brands, such as our renowned skincare and cosmetics ranges.”

Pessina has been seeking a partner in Latin America since 2012 when it struck the ground-breaking partnership deal with US drugstore retailer Walgreens. The two are expected to fully merge next year.