Celesio prepares for a bigger pharmacy network

Following an announcement today from the Competition and Markets Authority (CMA), Celesio is preparing to welcome over 2700 new colleagues to the Celesio family of businesses and specifically to LloydsPharmacy on 1st September 2016.  As part of a Partnership Agreement with J Sainsbury Plc revealed last year (29th July 2015), LloydsPharmacy is acquiring Sainsbury’s pharmacy business for £125m.

Under the terms of the transaction, LloydsPharmacy is obtaining 281 pharmacies in total, including 277 in-store pharmacies and four located in hospitals, all of which will, with CMA consent, be rebranded as LloydsPharmacy.  Sainsbury’s pharmacy colleagues will transfer to LloydsPharmacy under TUPE.

The CMA has identified 12 local geographic areas where the acquisition of Sainsbury’s pharmacies may be expected to result in a lessening of competition.  As a result, Celesio will be working over the coming months to remedy the situation and ensure that LloydsPharmacy colleagues in the affected areas are supported during the transition.  Christie & Co[1] has been appointed to help run the process of selling the associated pharmacies.

Cormac Tobin, managing director of LloydsPharmacy and Celesio UK, said:  “Sainsbury’s is a leading UK retailer, which has created an attractive pharmacy business. As a specialist pharmacy operator we can build on this strong foundation to offer Sainsbury’s customers a more enhanced health offering.  We also gain access to new customer groups and to new locations where LloydsPharmacy’s physical bricks and mortar presence is not currently as strong.

“Subject to CMA consent, we will be starting a programme of rebranding the pharmacies to LloydsPharmacy and introduce our service-led approach. Our services include pain management, skin health (e.g. advice on managing conditions such as eczema and psoriasis) Type 2 diabetes testing, asthma control checks and blood pressure checks, all of which are free to help people better manage their health and gain the most from their medication.

“This strategic partnership means that our customers will benefit from accessible parking, extended opening hours and convenient locations, and we are pleased to be offering Sainsbury’s customers our specialist pharmacy services.”


Media enquiries:

LloydsPharmacy:  Ella Myles +44 24 7643 2262

Sainsbury’s press office:  +44 20 7695 7295

Celesio AG:  Rainer Berghausen +49 711.5001-549

[1] Website for the process: www.project-maple.com.