McKesson eyes £400m sale of Lloyds Pharmacy

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.

More:  Frasers Group drops out of Debenhams sale

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!

Share this article

Latest Businesses for Sale

Domiciliary Care Provider
UK Wide, Wales

A provider of domiciliary care to older individuals and younger adults with physical disabilities/sensory impairments. Services provided by the company include personal care, night shifts, companionship, live-in care, respite and hospital to home. Se…

Asking Price:
Offers Invited

Manufacturer & Supplier Of Specialist Machines & Consumables
UK Wide

Achieved turnover of £1.9 million, with an adjusted EBITDA of £670k. The company is renowned as a leading supplier within its industry, developing innovative products that meet the evolving needs of major clients.

Asking Price:
Offers Invited

Provider Of Occupational Health Services And Training
UK Wide

The company is a multi-training provider which specialises in: occupational health, first aid and defibrillators, audiometry, spirometry and fire safety. Serves a range of industries including: food production, schools and nurseries, engineering, joi…

Asking Price:
Offers Invited

View more businesses for sale

More:  Administrators bring three former Shepherd Cox Group hotels to market

Post a Press Release

Browse Top 1000 Lists

More from: | Category: M&A News