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Day Lewis eyes 14 Lloyds branches linked to Sainsbury's deal

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The 14 Lloydspharmacy branches are being sold off individually

Day Lewis is considering buying all 14 Lloydspharmacy branches up for sale following the multiple’s deal with Sainsbury’s, C+D has learned.

The government's competition watchdog, the Competition and Markets Authority (CMA), gave the green light to the planned takeover of Sainsbury’s pharmacy business under the condition that Lloydspharmacy sells branches in 12 areas of England and Wales to prevent a "substantial lessening of competition” for patients.

Parent company Celesio UK confirmed that two additional sites had been added to the list of 12 on August 11.

Day Lewis head of commercial development Tim Harrington told C+D last week (August 19) that the chain will decide “at a later point” whether to bid for all, or only a few, of the branches.

Last year, the late Day Lewis CEO Kirit Patel told C+D that the chain was “very, very keen” to buy any Lloydspharmacy branches that came up for sale as a result of the CMA's investigation.

Possible bidding war

Mr Harrington said last week that he is aware the branches have already attracted a “tremendous amount of interest”. “That is likely to fuel high prices,” he told C+D.

Day Lewis has spent the last couple of years expanding its portfolio across the country, Mr Harrington said.

Because of the geographic spread of the Lloydspharmacy branches up for sale, “it certainly looks to some extent that these pharmacies help us with this [ongoing] objective”, he added. 

If Day Lewis does purchase any branches, it will have to follow conditions set out by the CMA, which is forcing Lloydspharmacy to sell the branches, Mr Harrington pointed out.

The 14 confirmed sites up for sale are:

  • Market Square, Sandy (two pharmacies)
  • Rice Lane, Liverpool
  • Bramingham Park Centre, Luton
  • The Highway, Beaconsfield
  • Saxon Centre, Kempston
  • The Green, Warlingham
  • Garden City, Kidlington
  • Lymington Road, Highcliffe, Christchurch (two pharmacies)
  • The Avenue, Alwoodley, Leeds
  • Birch Hill, Bracknell
  • High Street, Theale
  • Station Road, Llanishen, Cardiff

 

4 Comments
Question: 
Do you work in any of the Lloydspharmacies up for sale?

Angela Channing, Community pharmacist

How about Lloyds deciding to do the decent thing and sell them all individually, at a reasonable price, to young pharmacists who want to own their own business? ! 

R A, Community pharmacist

I understand where you come from, however given the decline of this sector I don't think its sensible to buy your own pharmacy because the conditions no longer exist for a pharmacy to operate as an independent. The only way a pharmacy will stay aflot is being part of a multiple which have greater buying power and more economical clout to get business loans at a favorable rate which would not be accessible to a young pharmacist. In my humble opinion we young pharmacist should seek alternative avenues to get off this sinking ship.  

Dave Downham, Manager

I hope that this isn't spin to inflate the prices...

Dave Downham, Manager

I hope that this isn't spin to inflate the prices...

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