Cohens Chemists agrees new funding line

NORTH West pharmacy operator The Cohens Group has agreed a new multi-million pound funding arrangement to support its growth plans.

The five year deal comes ahead of the August 31 expiration of an exisiting £38.5m facility with incumbent bank Royal Bank of Scotland.

The facility will help the privately-owned business to buy more branches and also help fund its investment in its existing retail portfolio.

The Bolton-based company runs more than 160 Cohens Chemist outlets throughout the country and is one of the UK’s largest independent pharmacy chain with 650 staff.

The new funding line came as the group’s parent company Gorgemead Ltd published results for the year to the end of August 2013 , which saw it post flat EBITDA of £3m on sales of £73m, down £1m on 2012.

Craig Fishwick, director at The Cohens Group, said: “Cohens Chemist is committed to providing communities with first class health care and services. The facilities provided by RBS will help us continue to achieve our business goals and reach our local communities throughout the country.”

Cohens Chemist has been working with RBS since 1979.

Sam Reynolds, relationship director at RBS Manchester, said: “Over the years we have developed an excellent relationship with the management which has allowed us to support their organic growth and acquisition strategies. We look forward to the business’ continued expansion.”

Mills & Reeve advised Cohens.