The CMA has now approved Bestway Healthcare’s acquisition of Lexon UK and Asurex after months of uncertainty, Bestway announced this morning (August 18).
In April, C+D reported that Bestway, which owns Well Pharmacy, had bought two wholesalers, Asurex Limited and Lexon UK Holdings – which also operated the 44-strong community pharmacy chain Norchem Group, trading as Knights Pharmacy.
But in June, the CMA raised competition concerns about the deal, with worries that the acquisition “could lead to a significant lessening of competition between retail pharmacies” in 12 areas in Liverpool and the north east of England.
Read more: CMA looks to give Well’s merger with Lexon the go ahead
Later that month (June 22), the CMA announced that it was considering a proposal from Bestway to a divest seven pharmacies to alleviate the authority’s concerns. See the locations of the affected pharmacies on the map below.
Last month (July 27), the CMA indicated that it was primed to approve the deal if Bestway went ahead with the divestments, and has today rubber stamped the acquisition.
The seven pharmacies to be divested are:
- Well Seaham, to be purchased by Teesside LLP, trading as Riverside Pharmacy
- Well Bishop Auckland, to be purchased by HA Healthcare Ltd
- Well Moreton, to be purchased by Gorgemead Limited, trading as Cohens Chemist
- Well High Howdon, to be purchased by S K Pharmacare Limited
- Well Pensby, to be purchased by Gorgemead Limited, trading as Cohens Chemist
- Well Kenton, to be purchased by Alrahi & Singh Limited
- Well Stockton-on-Tees, to be purchased by Pyramid Pharma 7 Ltd
"Pleased" deal going ahead
In a press statement today, Bestway said that it had found buyers for all seven branches it had identified, and that contracts were signed. It said that it “anticipates” a conclusion to the sales “over the coming months”.
And it confirmed to C+D that it would keep on all staff employed by the 44 pharmacies it has purchased.
Read more: Seven-pharmacy divestment mooted amid Well/Lexon competition concerns
CEO of Bestway Seb Hobbs said that he was “pleased” that the divestment plan had been accepted by the CMA. He welcomed “hundreds of dedicated colleagues” from Lexon and Asurex to the “Bestway Healthcare family”.
Mr Hobbs said he was “hugely grateful” for the “commitment” of those involved in creating the combined company.
The Bestway signed the undertaking to the CMA on August 17 and it was accepted by the markets authority today, according to the CMA’s documentation.
Well on acquisition trail
Well’s parent company also announced on August 11 that it had acquired luxury pharmacy John Bell & Croyden from Lloydspharmacy’s holding company. John Bell & Croyden held a Royal Warrant until 2022, serving as an official pharmacy of the late Queen Elizabeth.
On August 3, Well announced that it had bought 11 pharmacies in Scotland from Lloydspharmacy. The branches are located “in and around” Annan, Caol, Glasgow, Greenock, Kirkaldy, Stenhousemuir and Wishaw, and Well said that all staff at the stores “will remain in post as part of the Well Pharmacy family”.
In June, Well revealed that it had taken on “a number of” former Sainsbury’s Lloydspharmacy workers, after being among a group of multiples that pledged to help them find new roles in January.
