Lloyds Pharmacy owner acquires McCabes Pharmacy chain

Deal will create a chain of 114 stores countrywide

Sharon McCabe, chief executive of McCabes Pharmacy.

Lloyds Pharmacy owner, PHX Ireland, has agreed to acquire McCabes Pharmacy in a deal which will create a chain of 114 stores countrywide.

The deal means the two retail entities will merge their operations and trade under the McCabes brand. The new single operation will be run by Sharon McCabe — who has been chief executive of McCabes Pharmacy since 1999.

The value and terms of the deal has not been disclosed.

Lloyds Pharmacy operates 82 stores across the Republic of Ireland while McCabes Pharmacy has 32 stores across the greater Dublin Area. The deal is still subject to approval by the Competition and Consumer Protection Commission (CCPC).

When representatives of the company were asked about the potential for job losses between the two retail chains following the merger, a spokesman said the “ambition” over the medium term was to “grow the combined business not to shrink it”.

“Intensive, post-acquisition integration will commence once the CCPC process has concluded. Regular and clear communication with all employees will be ensured as the two businesses are integrated,” the spokesman said.

PHX Ireland is part of the German-based Phoenix Group — a European-wide pharmaceutical wholesaler and retailer. The group also owns United Drug, which is one of Ireland’s largest pharmaceutical distribution companies.

Paul Reilly, chief executive of PHX Ireland, the company had worked with McCabes Pharmacy group for many years via the United Drug business and this new combined pharmacy group would continue to “provide the high standard of services both groups have been providing for many years”.

Ms McCabe said they were looking forward to working with Lloyds Pharmacy and Phoenix group to “help our patients and customers across Ireland”.

In November last year, Phoenix Group completed its acquisition of German company McKesson Europe, which included taking control of United Drug, Lloyds Pharmacy, Median Healthcare and TCP Homecare business entities in addition to companies in Belgium, France, Italy, Portugal, and Slovenia.