Wed, 17 Feb 2021 | BUSINESS SALE
US-based group McKesson has hired bankers to explore a potential £400 million sale of UK chemist chain Lloyds Pharmacy. McKesson acquired the business in 2014 as part of a $8.3 billion (£5.9 billion) takeover of Lloyds Pharmacy’s German parent firm Celesio.
Since its acquisition, however, Lloyds has struggled with rising costs and cuts to government funding, with the loss-making business saying it had suffered “another exceptionally challenging year” in its latest available financial accounts, to the year ending March 31 2019.
In those accounts, Lloyds reported sales of £1.97 billion and a pre-tax loss of £196 million. On top of these existing struggles, the business has also been hit by COVID-19, with footfall dramatically reduced despite it being able to remain open as an essential retailer.
McKesson said its European sales had fallen 4 per cent, to £4.7 billion, “driven by the negative impact of the pandemic on the pharmaceutical distribution and retail pharmacy businesses.”
Amid these issues, McKesson has reportedly engaged bankers at Barclays to sound out potential buyers for the pharmacy chain, with sources claiming it could command around £400 million.
Lloyds, which has 1,400 UK locations and employs over 17,000 staff, has grown mostly through acquisitions. Prominent names it has acquired include Savory & Moore, Kingswood GK, Hills Pharmacy and Cross & Herbert. In 2016, it completed a £125 million takeover of Sainsbury’s network of around 265 in-store chemists.
McKesson’s other UK operations include drug wholesaler All About Health (AAH), which is also part of Celesio, private vaccine provider Masta and the upmarket Mayfair pharmacy John Bell & Croyden. It is unclear whether these other UK subsidiaries would be included in the potential sales process.
Find businesses for sale here.
If you are looking for an exit, we can help!
A highly reputable clinic in the heart of London, offering an extensive range of non-surgical services for a diverse clientele in its state-of-the-art clinic. The Company has achieved remarkable growth, surpassing its competitors, thanks to the team’...
LEASEHOLD
An exceptional standard of person-centred care for individuals in their homes and 24-hour supported living accommodation (two leased properties).
LEASEHOLD
An opportunity to acquire an independent and family-run care agency that provides 24-hour domiciliary care and support to service users in their home environment on a one-to-one basis.
RELOCATABLE
26
|
Jul
|
Tunnelling construction technology company falls into administration | ADMINISTRATION
A tunnelling construction technology company based in Basing...
26
|
Jul
|
Sumer firm RMT completes second deal of the year | MERGER
RMT Accountants & Business Advisors, which is part of the Su...
25
|
Jul
|
Occupational health service provider secures PE backing for acquisitions | BUSINESS NEWS
A Hull-headquartered provider of occupational health service...
20
|
Jun
|
Prescription start-up acquired by healthcare giant for undisclosed sum | BUSINESS SALE
A UK start-up company that helps individuals manage their su...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.