Doha: Bestway Group and The Co-operative Group have announced that they have acquired Co-op’s pharmacy business for a purchase price of £620m. The transaction is due to complete in October 2014, following final separation of the pharmacy business from Co-op.
The agreement follows a competitive sale process initiated by Co-op and Bestway saw off competition from the likes of Lloyds Pharmacy, Alliance Boots and Carlyle, the US buyout firm. The sale process came about following a decision by Co-op that the Pharmacy business was not part of its future strategy. The net proceeds will be used to reduce Co-op group debt and the transaction will enable Co-op to focus strategically on its core retail and sonsumer services divisions.
Co-op has agreed to continue to provide certain services to the pharmacy business for up to 18 months, under a transitional services agreement. Bestway will have the right to operate under the Co-operative Pharmacy brand for a transitional period of up to 12 months.
Bestway is the UK’s eighteenth largest privately owned company and seventh largest family-owned business. Bestway includes the UK’s second largest independent wholesaler serving 125,000 independent retailers and caterers from 64 warehouses nationwide and with over 6 million square feet of selling space offering a product range of over 25,000 items.
Zameer Choudrey, Bestway Group Chief Executive, said: “We are delighted to be bringing The Co-operative Pharmacy business into our Group, adding to our growing and diverse business portfolio. The Peninsula
