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Latest pharmacy sales reflect healthy market, says broker

Both Day Lewis and Green Light Pharmacy received bank funding to acquire new branches

Day Lewis and Green Light Pharmacy's recent purchases show there are still "lots of opportunities for buyers", says brokerage expert Linda Drabwell

Recent acquisitions by Day Lewis and employee-owned chain Green Light Pharmacy are proof of the continuing health of the market, a brokerage expert has said.

Day Lewis announced last week that it had passed the “significant milestone” of owning 250 branches with the purchase of an Essex pharmacy chain, while Green Light Pharmacy in London announced it had expanded from five to seven branches.

Linda Drabwell, sales manager at broker Hutchings Consultants, said the current level of pharmacy purchases showed “there are lots of opportunities for both first-time buyers and small to medium groups”.

Pharmacy groups were competing for premises, with businesses offering “well over our guide price” if they “really want” a specific pharmacy, she told C+D. “If it will fit in with their shops and they have a presence location-wise, they can be prepared to go the extra mile and pay a premium price,” she said.

Day Lewis said it was “on track” for its target of owning 400 pharmacies by 2020, and Ms Drabwell said she could not predict whether the company would reach its goal in time. “It depends on how competitive their bids are and if it fits their criteria in an area where they already have some [branches],” she said.

Both Day Lewis and Green Light secured bank loans to fund their expansions, and Ms Drabwell stressed that banks were “definitely” willing to loan to pharmacies. 

“A pharmacy that’s doing a good turnover is always guaranteed income,” she added.

 


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9 Comments
Question: 
What do you make of this story?

George Romanes, Community pharmacist

Linda is right !

Mr Smith, Pharmaceutical Adviser

It a great market if you are considering selling, the average goodwill price is now in excess of 9 times adjusted net profit or 125p in the pound of turnover. we are quickly heading into the dizzy heights of 2003/4 prices.

A.S. Singh, Community pharmacist

Kirit Patel comes across a shrewd (albeit dodgy) investor. The only way he can make money on these is if his loan is as close to 0% interest as possible and he bought these pharmacies for 80p in a pound or less. If so this Essex chain are stupid, plenty of newly qualifieds with rich daddies willing to spend 130p in a pound

Farm Assistant, Community pharmacist

No he comes across as a hypocrite always talking up the profession with one hand and extracting as much money as he can from the least powerful with the other.

London Locum, Locum pharmacist

He's only in it for the money. Feel like vomiting listening to him harp on about services, MURs, blah blah blah.

Hiteshkumar Popat, Community pharmacist

Aren't we all in it for the money!

Farm Assistant, Community pharmacist

I guess it's easy to buy more pharmacies when you are paying your pharmacists £14 an hour. If Charles Dickens came back today he would be amazed how society is going backwards.

Farmer Cyst, Community pharmacist

I'm a locum too, so I've got some sympathy with you, but really, if you're continually being offered £14/hr to be RP for 10 hour shifts - go and do something else. Unless you're a graduate from one of the real bottom of the barrel schools that have spat some...'interesting' quality students out over the last few years, you WILL find a job and subsequent career with a lot less stress than Pharmacy, and a lot more pay. I keep hearing about awful rates of locum pay - and then see in a university league table that Pharmacy is one of the degrees which (at a decent institution) attracts the highest UCAS points scoring graduates. Are these geniuses really entering the job market, banging their head like a goldfish that's given up on life into £14/hr locuming gigs? Try and get out of Pharmacy! You're the top strata of students this country produced, you don't HAVE to be a bloody locum shopkeeper! Only if it pays!

Farm Assistant, Community pharmacist

Luckily I gave up locuming a few years ago and will be retiring soon. I agree with you that if I was starting out there is no way I would put up with this sh.te for [email protected]. More to the point is do the people paying this rate have a soul? Believe it or not I actually care about my fellow pharmacists but despair that if they don't start to grow some balls very soon the whole "profession" will be on minimum wage within a generation.

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