The Hub Pharmacy sold to Allcures
The Hub Pharmacy, a chain of 16 community pharmacies in the North of England, has been sold to Allcures, a pharmacy chain with an online presence and a range of outlets in the Southeast of England, for a double-digit eight-figure amount, HealthInvestor hears from a source familiar with the situation.
Allcures, based in Essex, has over 30-years’ experience in the industry having built a portfolio of 32 sites. The acquisition of The Hub Pharmacy brings Allcures to a total of 48 branches. Allcure’s latest filing accounts ending in September 2020 put its revenue at around £9.2 million and its EBITDA at around £1 million.
Established in 2015 through a management buyout of MedicX Pharmacy, with funding support from Bridges Fund Management, The Hub Pharmacy has grown from a core of nine pharmacies to 16 pharmacies today located across Warrington, Halifax, Rochdale, and Greater Manchester. In the year ending March 2021, the company generated revenue of around £19.6 million and gross profit of around £6.6 million, according to Companies House.
The Hub Pharmacy was sold for an EBITDA multiple of well over 10x, according to our source.
This publication understands that the commercial and corporate finance debt advisory firm Mantra Commercial together with retail and commercial bank Shawbrook Bank worked on the buy-side providing a £14.285 million loan for the acquisition of the 16 pharmacies and also refinanced Allcures’ existing lender Santander for another five.
Allcures raised additional funds of £1.46 million against its commercial investment portfolio which were then utilised as part of the overall transaction, a Mantra Commercial LinkedIn post indicated. The debt was structured over a 4-year term, with 18 months interest-only to allow for a period of integration and includes an element of an old-fashioned hunting facility to allow for future growth, the post continued.
A spokesperson for Allcures said in a statement: “We are delighted to have acquired The Hub Pharmacy, delivering on our strategy to develop our service offering into the north of England.”
Tony Evans, head of pharmacy at Christie & Co who handled the sale, added: “The ultimate sale to Allcures, along with the wider interest the disposal generated, further underpins the appetite for good quality pharmacy assets in the market, something that has continued throughout 2022.”
Specialist business property adviser Christie & Co advised The Hub Pharmacy on the sale. Accountants Smailes Goldie Group and law firm Penningtons Manches Cooper also advised on the deal.