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!
Domiciliary care provider for adults requiring a range of specialist needs relating to genetic conditions mental health substance abuse & dementia. Care is provided on the behalf of social services the NHS & privately funded service users.
Provides flexible residential care from a range of properties rated Outstanding by Ofsted for children ranging from four-seventeen years old.
A highly reputable healthcare provider which has recently started trading. Offers private GP services, health checks, certified medicals, blood tests and minor (local anaesthetic) surgery for the benefit of employers and individuals operating in a di...
LEASEHOLD
|
09
|
|
Mar
|
Foodhub looks to raise £100m for acquisition drive | BUSINESS NEWS
UK-based takeaway delivery app Foodhub is hoping to raise &p...
|
08
|
|
Mar
|
Greensill Capital files for administration, threatening UK steel firms | ADMINISTRATION
Boutique bank Greensill Capital has filed for administration...
|
08
|
|
Mar
|
Beattie Communications chief exec takes over company in MBO | MBO/MBI
Creative agency Beattie Communications has been taken over i...
Sign up to receive our acquisition alert emails to get your FREE guide
|
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