Less than six months after being acquired by private equity firm Aurelius Group, the operator of LloydsPharmacy is changing its corporate name.
McKesson UK will now be known as the Hallo Healthcare Group. It will be the holding company for LloydsPharmacy, AAH Pharmaceuticals, LloydsPharmacy Clinical Homecare, LloydsDirect and Lloyds Online Doctor.
In a posting on LinkedIn, the company said: “Today we have officially changed our name from McKesson UK to Hallo Healthcare Group. This marks our separation from the McKesson Corporation and the start of our exciting new world under Aurelius Group ownership.”
McKesson UK was acquired by Aurelius in a £477m deal. The new ownership is expected to enable the company to accelerate its transformation strategy, including a push into digital channels and building on its healthcare and NHS activities.
The operation generates sales of over £5bn a year. However, its 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.
Accounts filed at Companies House earlier this year showed operating losses at the pharmacy business had been reduced from £115.5m to £35.1m during the 12 months to 31 March 2021. However, turnover slipped 9.6% to £1.76bn as the company continued to sell off underperforming sites. LloydsPharmacy ended the year with 1,351 outlets, a reduction of 76 from the previous period as part of its “rationalisation programme”.
Recent reports suggested that a “substantial number” of LloydsPharmacy stores could be sold in the months ahead.
NAM Implications:
- Despite its name change, the company remains under PE ownership.
- Meaning it requires different handling to traditional retailers/wholesalers by suppliers…
- See The Implications of Private Equity Takeover of a Mult
