McKesson has completed the sale of its businesses in the UK to private equity firm Aurelius Group.
The £477m deal, announced in November last year, included the sale of LloydsPharmacy, LloydsDirect, AAH Pharmaceuticals, LloydsPharmacy Clinical Homecare, LloydsPharmacy Online Doctor, MASTA, and John Bell & Croyden.
The agreement followed McKesson’s sale of other businesses in Europe as part of moves by the US firm to streamline its operations and fully exit the European region.
McKesson UK will now operate the whole of its businesses as normal with Aurelius stating that it will ensure a smooth transition as the British operation separates from its former US-based parent company.
The new ownership is expected to enable the business to accelerate its transformation strategy, including a push into digital channels and building on its healthcare and NHS activities.
McKesson UK generates sales of over £5bn a year. However, its 1,400-strong LloydsPharmacy chain has been struggling with the tough conditions in the sector. It has closed hundreds of outlets in recent years, blaming government funding cuts and higher operating costs.
Toby Anderson, CEO of McKesson UK, commented: “The acquisition of McKesson UK by Aurelius Group marks the start of a new and exciting chapter for our business. It will enable us to be more agile, focused on UK partnerships and patients, and gives us the opportunity to build on the progress we have already made in delivering our business strategy.
“We are on a mission to become the UK’s leading omni-channel healthcare provider and our new relationship with Aurelius means we will reach that aspiration sooner.”
NAM Implications:
- Everything now changes for suppliers to the McKesson disposed companies.
- See ‘Moving from Managing a Traditionally Owned to a PE Owned Mult‘
