Chemist chain Day Lewis Group secures £160m M&A funding and targets 150 pharmacy acquisitions
Chemist chain Day Lewis Group has secured £160m of investment from banking partners as it targets the acquisition of 150 pharmacies.
The family-owned business currently owns 277 sites across the UK and is aiming to build this number up to more than 400 by 2021. Day Lewis Group also said it aims to double its revenue, which was £264m in the year to 31 March 2015.
The company said it had secured a £160m funding facility with a potential to extend to £210m. This will enable the business to consolidate a number of sister companies into the group as well as funding acquisitions.
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The financial package has been provided by a consortium of banks, including Lloyds Banking Group, RBS, HSBC, Barclays and Santander.
The company said NHS dispensing and services provide its main revenue streams and prescription dispensing has grown by 36 per cent in the past year.
Sam Patel, director of Day Lewis Group, said: “The overall market for NHS dispensing in the UK is worth £15bn, and it’s growing at between three and five per cent a year."
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The group now says it is now the fifth largest multi-pharmacy chain in England, employs 2,400 people and plans to expand internationally within four years.
Jenny Tasker, relationship director, mid market healthcare and consumer services at Lloyds Bank Commercial Banking, said this marked a "significant milestone" for the company.
She added: “The UK’s £60bn pharmaceutical sector is one of our most valuable research-intensive industries, and pharmacy chains and suppliers are an integral part of this success story."