Lloydspharmacy has bought Sainsbury’s pharmacy business for £125 million, the companies have announced.

All of the supermarket giant's 281 pharmacies – 277 in stores and four in hospitals – will be rebranded as Lloydspharmacy, the companies said in a joint statement today (July 29).

All of Sainsbury’s "up to 2,500" pharmacy staff will transfer to Lloydspharmacy, the companies said.

The sale is due for completion by the end of February next year, and Sainsbury’s will receive annual rent for each location, they added.

The deal will increase Llodspharmacy's existing network of more than 1,500 branches by around 18%.

Lloydspharmacy and Celesio UK managing director Cormac Tobin said Sainsbury’s was a “fantastic fit” for his company.

“Over recent years we have developed a range of services to make it easier for people to manage their health, and we look forward to making these even more accessible via the Sainsbury’s network," he said.

Sainsbury’s chief executive officer Mike Coupe said the supermarket's pharmacy services were "incredibly popular" with customers and he was "delighted" by the deal.

“Working together will enable us to grow and extend our pharmacy services to customers, whilse realising value for shareholders today,” he added.

Last year, UK-based food wholesaler Bestway bought the Co-operative Pharmacy's 771 branches for £620m.

In 2009, Boots rebranded 13 pharmacies it operated in Waitrose stores under its own name.

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