The Co-Operative has agreed to sell it’s Co-Op Pharmacy business to the Bestway Group. The deal, for £620m, is expected to be complete in October, following a period of separation.
The agreement follows a competitive sale process initiated by Co-op and Bestway which saw off competition from the likes of Lloyds Pharmacy, Alliance Boots and Carlyle, the US buyout firm. The net proceeds will be go towards reducing the Co-operative Group’s debt.
Co-op has agreed to continue to provide certain services to the Pharmacy business for up to 18 months, under a transitional services agreement. Bestway will have the right to operate under the Co-operative Pharmacy brand for a transitional period of up to 12 months.
The acquisition is expected to take Bestway’s turnover to £3.4bn with a global workforce of more than 32,600 people, including over 11,900 people in the UK.
Zameer Choudrey, Bestway Group Chief Executive, said: “We are delighted to be bringing The Co-operative Pharmacy business into our Group, adding to our growing and diverse business portfolio. In line with our own ethos, there is a strong focus on supporting and interacting with local communities within this sector.
The Co-operative Pharmacy itself is a strong, competitive business, operating in a sector where demographic trends show an increasing demand for healthcare services amongst the wider community. We see great potential to grow the business organically and through future acquisitions. We always look to take a long term approach and have a strong track record of successful acquisitions, and successfully growing employee and customer bases. We are confident that we will continue to do so with this business.”
