Gemini Pharmacies for Sale

News

Gemini pharmacies may soon change hands. The chain, which has more than 160 locations, wants to sell to the Warburg Pincus fund, according to Puls Biznesu, citing Bloomberg.

Gemini Pharmacies Valued at Over 2.5 Billion PLN

According to the agency’s sources, Warburg Pincus is already working with advisors on this transaction. Its value could reach as much as €600 million (2.6 billion PLN). Other private equity funds and industry investors have expressed preliminary interest.

Warburg Pincus’s withdrawal from this investment may be due to the difficult situation in the pharmacy market caused by legal regulations. The so-called “Pharmacy for Pharmacists” law, enacted in 2017, has significantly limited the growth potential of pharmacy chains. Additionally, growth is limited by demographic and geographic factors.

A fourfold increase in the number of pharmacies

The Gemini Pharmacy chain has over 160 locations. They operate throughout Poland. The company also runs one of the largest online pharmacies in Poland. According to a PMR report, in July 2019, the aptekagemini.pl website had over 2.2 million unique users. In 2018, Gemini Hutter Sp. z o.o.’s revenue totaled 486 mln zł. Individual Gemini pharmacies are also managed by subsidiaries.

Warburg Pincus acquired the chain in 2015. At that time, it consisted of approximately 40 locations, operating mainly in Pomerania. In 2017, it took full control of the two Polish companies that managed the chain.

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