Asset management company Aurelius is reportedly planning to sell off one of the last remaining elements of the former LloydsPharmacy family of businesses as it invites bids for wholesaler AAH. 

The Financial Times reported yesterday (September 2) that “according to two people familiar with the matter,” Aurelius plans to auction the company, which in the year to April 2023 made a profit of £55m according to its last Companies House filing. 

Aurelius reportedly hopes to sell the wholesaler – currently part of the Hallo Healthcare holding company group along with several other former McKesson UK divisions – for up to 10 times its earnings, which are expected to be in the region of £90m this year. 

A £900m price tag would be almost double the £477m that the asset strippers paid for the entire McKesson UK business in 2021, including AAH and the LloydsPharmacy estate which was sold over the course of 2023 and put into administration – leaving debts of almost £300m. Aurelius also put the Body Shop into administration in February this year just weeks after completing its £207m purchase of the chain. 

Investment firms HIG Capital and CapVest are reportedly among the companies expected to bid for AAH, which according to its website delivers “over 10 million items per week to more than 14,000 pharmacies and other organisations” from a network of 11 distribution centres.  

In August, Hallo Healthcare told staff employed by LloydsPharmacy Healthcare Services that it planned to sell off the clinical services business, which operates in 64 sites mainly encompassing hospital outpatient department pharmacies. 

It is currently thought that the auction process for AAH, which is being conducted by BNP Paribas advisers, will conclude “by the end of the year,” the FT reported, although the sale might be called off if bids fail to meet Aurelius’ expectations. 

Hallo Healthcare has been approached for comment.