Pharmacy chain Paydens acquired SG Court Group – located predominantly across Kent, Sussex and Surrey – on November 7 for an undisclosed sum of money.
The Paydens portfolio now includes a total of 129 pharmacies across the south of England, as well as a pharmaceutical wholesaler and a small care home group.
Managing director Dennis Pay said that SG Court is a “complementary match” for Paydens, and highlighted the company’s “impressive track record…against the backdrop of a challenging economic environment”.
London Cavendish Corporate Finance, which advised the business during the acquisition, said SG Court Group is a “highly attractive” business, dispensing approximately 2.7 million prescription items per year.
The firm – which previously advised on the sale of Kent Pharmaceuticals to healthcare business DCC Healthcare in 2012 – said growing competition among pharmacy groups and the government’s decision to cut the sector's funding by 12% from December, has “encouraged” recent mergers and acquisitions in the industry.
Partner at the firm Michael Jewell expects “further consolidation” as NHS funding continues to be slashed, he said.
Pharmaceutical Services Negotiating Committee chief executive Sue Sharpe said earlier this month that changes to regulations around mergers – which will prevent a new pharmacy stepping in straight away if two pharmacies merge – could help contractors “survive” in future.