The Competition and Consumer Protection Commission (CCPC) has cleared Uniphar's proposed acquisition of LXV Remedies, the owner of the Sam McCauley chain of 37 chemists, subject to a number of legally binding commitments.

During its investigation into the transaction the competition highlighted concerns about the lessening of competition in the retail pharmacy sector in Kildare, Meath and Wexford.

Uniphar will divest three specific pharmacies, as going concerns, to a suitable purchaser or purchasers, subject to CCPC approval.

The pharmacies are McHugh's Allcare Pharmacy in Athy, Hickey's Pharmacy in Navan, and McCauley Health and Beauty Pharmacy in Bunclody.

Uniphar has also committed not to carry out any act which can reasonably be expected to have a significant adverse impact on the value, management or competitiveness of the pharmacies before their sale, and not to acquire the pharmacies back for a period of time following their sale.

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An independent monitoring trustee will be appointed to ensure the conditions are met. With the commitments given by Uniphar, the CCPC has determined that the proposed acquisition will not substantially lessen competition, and that it may proceed.

Revenues at LXV Remedies for the 12 months to September 2021 fell 3% to €80.4m while annual losses fell from €3.1m to €1.9m.

Cash generated from operations was €4.9m, down from €5.6m, and interest paid on bank and private equity borrowings was €1.3m.

Total liabilities in September 2021 amounted to €86m, and the company's negative net worth was €33.5m. Bank debt totalled €24.4m at period end. The deal was announced in September, but terms were undisclosed.

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