The UK pharmacy market is likely witnessing the return of small-medium size group operators to the buying landscape
The MSN & Lunts Pharmacy Group has expanded its portfolio with the recent acquisition of Bicton Heath Pharmacy in Shropshire.
According to Christie and Co, who brokered the deal, the pharmacy was formerly corporate-owned and was brought to the market as “part of a wider disposal project.”
Located just 2.5 miles from Shrewsbury, Bicton Heath Pharmacy is a standard-hours pharmacy that dispenses an average of 6,600 items monthly, the broker said.
It was purchased by Ravi Nagra, CEO of MSN & Lunts Pharmacy Group, for an undisclosed price.
Nagra's group operates a dozen pharmacies across the West Midlands, serving communities in Shrewsbury, Pontesbury, Craven Arms, Highley, Ludlow in Shropshire, Birmingham, and the Black Country.
Carl Steer, director – pharmacy at Christie and Co, highlighted this acquisition as a potential signal of the start of “a return for small-medium size group operators to the buying landscape.”
“Increasing numbers of group operators seem to be shaping up to return next year or have already secured deals to complete in Q1/Q2 2025,” he said.
Raylane Ltd also recently expanded its portfolio of 10 pharmacies with the acquisition of Evans Pharmacy in Worcestershire.
According to Christie and Co, the pharmacy, which dispenses approximately 10,000 items per month, had been owned by Philip Hawkes for over a decade and was put on the market due to his retirement.
Despite ongoing operational challenges in the pharmacy landscape, Christie and Co anticipates “a record year of activity” in 2024.
“High levels of activity in H2 2024 will already ensure 2025 starts with a bang,” Steer said.
Steer added that while accurate pricing will continue to be key for all sellers, there is “a buoyant market across the Midlands,” which he believes is promising for would-be sellers.
As revealed by Christie and Co’s Pharmacy Market Review 2024, the UK pharmacy market experienced a 3.5 per cent decline, with 505 pharmacies removed from the register—primarily from corporate estates.
Divestment efforts in 2023 led to Rowlands reducing its estate by 15.8 per cent and Boots by 13.2 per cent.
Meanwhile, supermarket chains such as Tesco, Asda, and Morrisons saw smaller reductions.
In contrast, Well Pharmacy expanded its presence, increasing its branch count to 761 pharmacies through the acquisition of 42 pharmacies from the Norchem Group.
The report cited the complete exit of the LloydsPharmacy brand from the high street as the most significant impact on corporate market share.
During its two-year ownership of LloydsPharmacy, AURELIUS oversaw the closure of 1,349 corporate branches.
“Without a doubt, the main beneficiary of this demise has been the independent sector, with existing operators and first-time buyers snapping up opportunities to acquire pharmacies at greatly discounted prices,” the broker stated.
