2016

Year

Sell-side

Transaction Type

Healthcare

Sector

SG Court

Client

Paydens Limited

Acquired By

SG Court / Paydens Ltd

Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A firm, has advised the shareholders of the SG Court Pharmacy Group (SG Court), a privately owned chain of pharmacies located in the South East of England, on its acquisition by Paydens Ltd (Paydens). Also located in the South East, Paydens is a leading, independently owned pharmacy group that also includes a pharmaceutical wholesaler and a small care home group within its portfolio.

Established in 2004, SG Court has grown strategically through acquisition, and now runs a chain of 21 pharmacies in key locations predominately across Kent, Sussex and Surrey. SG Court has a highly attractive pharmacy footprint, and dispenses approximately 2.7m prescription items each year, significantly higher than average script levels and operates modern premises from strategic locations, with an established and loyal customer base. The SG Court pharmacies will continue to provide comprehensive healthcare services to the communities they serve, supported by Paydens’ wider geographical reach and distribution channels across the region.

Growing competition among pharmacy groups, combined with recently announced Government funding cuts, has encouraged recent consolidation amongst pharmacy groups. The combined business will have a total network of 129 pharmacies, enabling further economies of scale and allowing distribution to be centrally controlled in one geographical location.

Cavendish Corporate Finance, which advised the shareholders of the SG Court Group, has considerable experience in advising pharmaceutical and healthcare businesses. Recent high profile transactions include advising on the sale of Kent Pharmaceuticals to DCC plc and the sale of off-patent pharmaceuticals provider DB Ashbourne Ltd to Ethypharm.

Michael Jewell, partner at Cavendish Corporate Finance, which advised SG Court on the transaction commented:

“We are delighted to have advised the shareholders of SG Court and to have found in Paydens the right buyer to continue to develop the network and continue its reputation for customer focused service. This acquisition will see SG Court and Paydens unlock significant synergies from their complementary geographical reach, improve pharmacy efficiency and deliver high quality patient services.

SG Court and Paydens are both recognized names in the pharmacy industry and the acquisition by Paydens presents an exciting opportunity for continued growth.

The competitive landscape of pharmacies has changed over the past decade, and we believe that further cuts to NHS funding will result in further consolidation in the industry.”

Dennis Pay, Managing Director, Paydens Pharmacy Group, commented:

“We are very pleased to have found such a complementary match in SG Court, a company we have long admired. The firm operates a successful chain of pharmacies and has a strategic geographical presence in the South East that complements our own. SG Court has an impressive track record and has successfully grown the business against the backdrop of a challenging economic environment and Government funding pressures on community pharmacies.

We look forward to welcoming SG Court to the Paydens family and to integrating its business operations into our growing network of pharmacies.”

Key Contacts

Michael Jewell

Partner, Healthcare

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Peter Gray

Partner

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Rebecca McCredie

Associate Director

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