Bestway’s Well Pharmacy subsidiary has announced the acquisition of Lexon UK Holdings and Asurex Limited, a family-owned pharmaceutical wholesaler with five depots in Redditch, Leeds, Durham, East Kilbride and Dublin, and a network of pharmacies across the Midlands, Northwest, and Northeast of England.
Lexon, which has been in operation for over 25 years, operates primarily as a pharmaceutical wholesaler serving 3,000 retail pharmacies across the UK and Ireland. The business also operates 42 community pharmacies (currently trading as Knights Pharmacy) and is a specialist developer and manufacturer of generic pharmaceuticals.
The financial terms of the deal were not revealed. The acquisition is being reviewed by the Competition and Markets Authority (CMA).
Haider Choudrey, Bestway Group’s CFO, commented: “Through this acquisition we seek to augment our growth momentum and bring in even greater benefits to both community pharmacies and patients. Well Pharmacy had been searching for a target to expand its footprint and complement its growth trajectory, and we are confident that Lexon fits this criterion.”
Seb Hobbs, CEO of Well Pharmacy, added: “We’re delighted to be welcoming the 1,200 strong team at Lexon and Asurex to Well and the broader Bestway family, and are excited at the chance to grow our business to support even more customers and patients than ever before.
“We know that Lexon share our ethos as a values-orientated family business and that by bringing together our expertise we will be able to grow all aspects of our business by building on each other’s strengths. These are incredibly challenging times for community pharmacy, so we’re really pleased to be able to have an opportunity to show our commitment to the sector, now and into the future.”
Meanwhile, Anup Sodha, who remains Managing Director at Lexon, said: “Colleagues should look forward to a bright future, with the added security of being part of a larger group with the investment, opportunities and benefits that will provide. Both businesses, being independent and family-owned, share similar cultural values and have the common goal of providing exceptional service and value to pharmacy, our patients and our supply chain.”
The community pharmacy sector has faced challenging trading conditions in recent years due to Covid restrictions impacting store footfall and the sector being unfunded by the government.
Earlier this year, LloydsPharmacy stated that it had decided to withdraw from its concession partnership with Sainsbury’s following a recent strategic review that identified “changing market conditions”. Recent reports have also revealed that it is selling a “significant” number of other sites across the UK.
NAM Implications:
- Another feature of Lockdown fallout.
- i.e. anticipate potential takeover and merger…
- …especially in retail.
- Meaning, correct pricing and terms anomalies…
- …before a new owner does it on your behalf.
- Meanwhile, the acquisition means additional skills and facilities for Well…
- Time to modify your trade strategies accordingly?
