British supermarket chain Sainsbury’s has decided to sell its pharmacy business to Celesio’s LloydsPharmacy in an acquisition deal worth £125 million that is expected to be completed by the end of February.
As part of the strategic partnership, LloydsPharmacy will acquire 281 Sainsbury’s pharmacies in total, including 277 in-store and four in hospitals, all of which will be rebranded to LloydsPharmacy. It will pay Sainsbury’s commercial annual rent for each location. Further up to 2,500 Sainsbury’s pharmacy employees will transfer to LloydsPharmacy.
“Pharmacy services are incredibly popular with our customers and we are delighted to be teaming up with LloydsPharmacy to develop our offer,” says Mike Coupe Sainsbury’s chief executive. “Our collaboration with LloydsPharmacy will enable us to grow and extend our pharmacy services to customers, while realising value for shareholders today from the pharmacy business we have grown organically over the last 20 years.”
“Sainsbury’s is a great fit for LloydsPharmacy. We are both passionate about excellent customer service, making a positive impact on the communities we serve and improving the health and wellness offerings for our customers,” adds Cormac Tobin LloydsPharmacy and Celesio UK managing director.