Boots stamps authority on chemist trade

Yet again the massive corporate footwear of Boots, the giant British retail chemist chain, strode across the Irish retail chemist sector causing further headaches among local pharmaceutical suppliers as well as embellishing the list of Irish business millionaires. After snapping up the Hayes Conyngham & Robinson chain for £13 million, Boots this week put the indent of its footprints on the privately-owned Connors chain of chemists, purchasing the 33strong chain for £21.9 million.

The acquisition further strengthens Boots's burgeoning power in the Irish retail pharmacy market. Boots now owns 28 outlets in the Republic and is on the look-out for more. It is due to open a major branch in Quarryvale later this year and is considering expansion in Cork, as well as studying all major conurbations as to their potential for new stores.

The attraction of Connors is its 25 stores in Northern Ireland, giving Boots 50 outlets in the North. Additionally, the group operates five branches in the Republic and three in Britain. The group has net assets of around £4 million and in the 16-months to end January last had a turnover of £60 million sterling.

Connors is owned by Galen Holdings, the Northern Ireland pharmaceutical company which came to the stock market last year. Dr Allen McClay, Galen's chairman and founder, holds 60 per cent of the Connors equity and is the major beneficiary of the deal. He will receive £10.8 million for its shares, while chief executive John King and financial controller Geoffrey Elliott will receive £5.4 million and £1.8 million respectively. Dr McClay, who has a 34.7 per cent shareholding in Galen, (currently worth around £215 million.) says that the company wants to concentrate on its core business of pharmaceuticals .

Boots says its experience in Ireland has been "positive and rewarding ". While the structure of Connors will be evaluated, no major job losses are envisaged. The chain employs around 650 people throughout Ireland.