Lloydspharmacy may sell substantial number of branches, sources tell C+D
Lloydspharmacy may be planning to sell a substantial number of its branches, C+D has reason to believe.
Several sources have told C+D of the multiple's alleged plans to sell a large number of branches.
However, a spokesperson from Lloydspharmacy told C+D that while the multiple “continually explores options, no decisions have been made”.
“As part of our routine business practices, we regularly review our estate to ensure our stores are commercially viable while ensuring patient safety and colleague wellbeing,” they added.
It comes after private equity firm Aurelius Group completed the £477 million acquisition of McKesson UK, Lloydspharmacy’s parent company, last month (April 7).
The acquisition positioned McKesson UK as a “standalone” business owned and financially backed by Aurelius, McKesson UK wrote in its announcement at the time.
“The UK business, formerly part of McKesson Corporation, will operate the whole of its businesses as normal and will continue its mission to become the UK’s leading omni-channel healthcare provider,” it added.
Following the announcement of the McKesson UK sale to Aurelius in November last year, Scott Hayton, director of Hutchings Consultants, told C+D that Lloydspharmacy branches would be in a strong position were they to be put on the market.
In recent years, on occasions where McKesson UK had divested Lloydspharmacy branches, “people were quite fast when they were selling and keen to acquire them because they thought, I'm going to be able to turn this around and really make something of this,” he added. “So, people are definitely interested to pick them up.”
Lloydspharmacy revealed in its financial report for 2020/2021 that it had decided to close, merge, or sell 76 branches in 2020/21 as part of a “rationalisation programme” it started as a consequence of the “challenging” government funding model.