The Walsh Pharmacy Group, which includes 14 shops in Cork and Tipperary, has been sold to the pharmaceutical wholesaler UniPhar for what is believed to be between €50 million and €55 million.
The main beneficiary of the deal is pharmacist Mr Martin Walsh (48) who is based in Carrigaline, Co Cork. He holds a 70 per cent shareholding in the group, making his stake worth up to €38 million. His wife, Mrs Bernadette Walsh, holds 5 per cent.
Mr Walsh's parents, Mr Jeremiah Walsh and Mrs Marie Walsh together own 25 per cent with a value of up to €13 million.
The group was founded by Mr Jeremiah Walsh in 1947 and now includes 14 pharmacies with 11 in Cork city and county and three in Co Tipperary. It employs 155 staff, all of whom will be retained in the business.
At the end of July 2003 the group had fixed assets worth €12 million. Shareholders funds amounted to €8.5 million. Turnover figures were not disclosed.
UniPhar confirmed the purchase when contacted by The Irish Times yesterday. A spokesman said the deal underlines the company's commitment to the ethos of retaining independent pharmacies in the Irish market. "UniPhar supports the expansion of community pharmacist ownership by independent pharmacists," he said.
UniPhar is owned by 450 independent pharmacies and has been expanding its presence in this market through an investment and management company called IPOS which takes an initial option in independently operated pharmacies. The deal with the Walsh family brings the number of pharmacies operated by UniPhar in the Republic to 105.
UniPhar also distributes healthcare products to community and hospital pharmacies and acts as an agent for international pharmaceutical and surgical/medical supply firms in the Republic. The group has a turnover of more than €300 million and employs more than 240 people.
The group has been paying generous prices to acquire pharmacies across the Republic. Sources within the industry suggest it has been paying a multiple of more than 25 times each pharmacy group's turnover.
Its aggressive buying spree has sparked some speculation that UniPhar may be building a substantial block of businesses to ultimately sell on to an international group. Earlier this year it concluded a takeover deal with the Whelehan Group, a privately-owned distributor of medical, beauty, agricultural and garden care products, believed to be worth between €45 million and €50 million.
UniPhar controls about one third of the Republic's highly-competitive pharmaceutical wholesaling market, with the Whelehan group estimated to have a market share of about 1 per cent.
That deal is being examined by the Competition Authority. It is understood that UniPhar has taken legal advice and believes the Walsh group deal is not required to be referred to the Competition Authority.
