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£160m loan gives Day Lewis 'firepower' to mull Lloyds sales

CEO Kirit Patel: Day Lewis "happy" to buy all Lloyds branches that may come up for sale

Day Lewis will consider buying all Lloydspharmacy branches the multiple may have to sell ahead of its buyout of Sainsbury's pharmacy business

EXCLUSIVE

A £160 million bank loan Day Lewis secured in March has given it the “firepower” required to buy all Lloydspharmacy branches that the multiple may have to sell ahead of its buyout of Sainsbury’s pharmacy business.

Last month, government watchdog the Competition and Markets Authority (CMA) identified 13 areas across England and Wales where the deal could result in a “substantial lessening of competition” (see map) unless one or more Lloydspharmacy branches are sold.

Day Lewis CEO Kirit Patel first told C+D in December that he would be “very keen” to buy any Lloydspharmacy branches available.

He reaffirmed last week that he is "happy" to purchase all of the branches that the multiple could be forced to jettison in each of the 13 areas.

"National presence" would make purchases easy

Day Lewis already owns branches in most of the areas where Lloydspharmacy may have to sell up, and his company’s “national presence” means it would have little trouble incorporating these pharmacies into the business, Mr Patel said.

Any potential purchasers of the pharmacies will need to be “mindful” of the financial impact of the government’s plans to slash pharmacy funding in England by £170m in October, Mr Patel warned.

But he predicted that bidding for Lloydspharmacy branches would be “competitive”, with many prospective buyers.

Day Lewis is the only company that has expressed an interest to C+D in buying the pharmacies. Read the responses from Boots and Well here.

 


Would you consider bidding for any of the Lloydspharmacy branches? 

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11 Comments

S J- Locum, Locum pharmacist

Can Mr Patel comment on the appalling and insulting locum rate of £12/hr he is paying the locums, which is £2 below locum dispenser rate and £10/hr below national average. Considering he is a Pharmacist would he and his son accept this rate of pay.

Shame on you , getting richer on blood money

Amal England, Public Relations

This is taking the usual course. First Kirit says to the CC that there should be no adverse issue for the consumer in Lloyds taking over Sainsburys Pharmacy (why CC was seeking advise from these multiples is wholly wrong). Now he says DL is ready to take on all of the branhces Lloyds has to sell. A case of fat cat helping another fat cat. And why is Kirit "very keen"? Some of the branches are probably not breaking even or only just? Well fat cats often don't really tell you what their real motive is. I feel sorry from the bottom of my heart for the staff at these quieter branches.

Yuna Mason, Sales

Big loan, offset the debt vs revenue to lower apparent profit and so pay less tax?

S Morein, Pharmacy Area manager/ Operations Manager

So Banks think that Pharmacy is a get bet to make an effective return. Yet contractors bleat about how they are all on their uppers whilst goodwill values remain at all time highs. Pleading poverty is laughable. The evidence that contractors are doing very nicely is more than overwhelming. Greed in supply of healthcare is not an attribute the DH will value.

Dave Downham, Manager

Sometimes, I think that you need to switch a couple of vowels in your surname with another one. You ain't got a clue, sunshine.

thepharmacist Forever!, Pharmacist Director

If Kirit has £160 million, he can give to the government and all the other contractors collectively can give the other £10 million, DOH happy, almost all contractors happy.  Or maybe Kirit could be help with his payment by the other large multiples who have allergedly received different (larger) payment methods then the small independents 

Dave Downham, Manager

Would this create another CMA investigation?

Hugh Jass, Pharmacy Area manager/ Operations Manager

I think Mr Patel will be lucky if  Lloyds divest any more than 20-30 branches.

Pill Counter, Pharmacy

Advert.

Harry Tolly, Pharmacist

"Day Lewis CEO Kirit Patel first told C+D in December that he would be “very keen” to buy any Lloydspharmacy branches available."

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Makes a mockery of the position of the contractors that say that staff cuts will have to be made and hardship will ensure if the £170 million cutbacks go ahead.

 

Very smart public statement Mr Patel. Thanks a lot for sharing your plans publicly.
 

Mr Pharmacist!, Pharmaceutical Adviser

Joker! Good stock picture though ;)

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