Strong interest from trade and PE for Co-op Pharmacies

HIGH street chemists giant Alliance Boots and a clutch of private equity firms are reportedly bidding for the Co-operative’s Pharmacy business, which is being sold to reduce group debt.

According to Sky News the private equity firms include: Terra Firma Capital, Holland and Barrett’s owner Carlyle, CVC Capital Parners, Montagu, Cinven and Charterhouse.

All are said to have submitted preliminary bids for the Manchester based business. The Co-operative Group is looking for more than £600m for the business.

It remains to be seen whether a sale to Alliance Boots would trigger an objection from the Competition and Markets Authority, although Co-op executives are understood to be hopeful that the fragmentation of the market would make such a deal possible.

Celsio, the owner of another competitor, Lloyds Pharmacy, is also rumoured to be interested.

The Co-op and the potential bidders for the pharmacies declined to comment.

The loss-making mutual is selling its pharmacies and smaller farming  division to reduce its £1.5bn debt pile by putting its finances on a firmer footing.