06 October 2014

 

Bestway Group completes acquisition of Co-operative Group’s Pharmacy business

Development of a new brand for the Pharmacy business underway. Potential sites for Manchester HQ identified

London and Manchester: Bestway Group ("Bestway" or “the Group”) today takes formal control of the Co-operative Group’s Pharmacy business. This follows July’s announcement of the £620 million deal. The Group worked with JPMorgan and Nomura, supported by Barclays, RBS and its other relationship banks to secure the financing for the acquisition.

Bestway, which has the right to operate under The Co-operative Pharmacy brand for a transitional period of 12 months, has begun developing and testing possible new brands for the business. It expects to confirm the new name for the business before the end of first quarter 2015.

In the meantime, the Group has identified a number of possible sites in Manchester for the new HQ of the pharmacy business.

Following this (and with the Group’s subsequent acquisition of Lafarge Pakistan Cement Limited a week after the announcement of The Co-operative Pharmacy deal), Bestway will now have an annual turnover of approximately £3.6 billion and a global workforce of 33,000 people, with over 11,900 people in the UK. It is the UK’s eighteenth largest privately owned company and seventh largest family-owned business.

Along with The Co-operative Pharmacy, which is the UK’s 3rd largest pharmacy business, the Group now consists of the UK’s 2nd largest wholesale business, and both the largest cement manufacturer and 2nd largest private bank in Pakistan. The Pharmacy acquisition marks the latest move in the multinational Group’s continuing diversification strategy.

Zameer M. Choudrey, Bestway Group Chief Executive, said:

“We are delighted to have brought The Co-operative Pharmacy business into the Bestway family, adding an exciting 4th pillar to our growing and diverse business portfolio. Since announcing the transaction, we have continued to be impressed by the business which has carried on performing strongly, operating ahead of budget. At the time, we said our approach was to support the existing management to drive the business forward, and this is precisely what we are doing, ensuring minimum disruption. To this effect, I am also delighted that this thriving business will remain based in Manchester.”

“We were also pleased with the positive response to our fundraising. In the end our Group Corporate facility of £725m was well received by the market. The fact that our credit was significantly oversubscribed really showed the City’s enthusiasm for our strategy, as well as their trust and confidence in the Group and its strong prospects for long-term, profitable growth. We truly value the commitment and dedication all our partners have demonstrated throughout the process. They played a big role in helping Bestway Group to succeed in acquiring the Pharmacy business.”