Unichem purchases Bradford rival for up to pounds 8.9m

UNICHEM, the pharmaceutical distributor and owner of the Moss Chemists chain, is buying Yorkshire-based Bradford Chemists' Alliance for up to pounds 8.9m.

BCA, the main wholesale supplier to 166 chemists, had a turnover of pounds 52m and made taxable profits of just over pounds 1m in the year ended September.

The recommended offer involves an initial payment of pounds 7.6m, with a further pounds 1.3m depending on future BCA sales. The purchase will be financed by the issue of a maximum of 3.4 million new UniChem shares, with a cash alternative to BCA shareholders. BCA, owned by its customers, had assets of pounds 3.2m.

Jeff Harris, UniChem's chief executive, said BCA was one of the largest and most profitable of regional wholesalers. 'The merging of the two businesses will allow cost savings through automation and unlocking increased earnings potential,' he said.

BCA's warehouse in Bradford will be merged with UniChem's Leeds operation, and there will be job losses.

Earlier this month UniChem bought nine pharmacies for pounds 3.4m, bringing its total number of outlets to 253. It supplies 5,000 independent retailers. The company has been expanding fast, and in September boosted first-half pre-tax profits by 43 per cent to pounds 18m.

Further growth is expected as more products are allowed to be sold over the counter rather than on prescription only.