Pharmacy chain set for expansion following loan from The Co-op and RBS

The UK's largest independent pharmacy chain is seeking new acquisitions after securing a £68million loan facility from The Co-operative Bank and Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB).

Croydon-based Day Lewis Chemist plc has been granted bank facilities which will now enable it purchase new pharmacies.

The Cooperative Bank was introduced as a club partner alongside RBS CIB in the £63.3m senior debt package which was split equally between the two banks along with an additional £5m of acquisition capacity.

The pharmacy chain, which in 2010/11 had a turnover of £178million, sought new funding following significant growth which has seen the company grow from two pharmacies in 1975 to 195 pharmacies in 2012, most of which are in the south of England. The company recently completed purchases of pharmacies in Essex, Norfolk and Wiltshire and has several others in the pipeline.

Following a tender process which began in February, relationship manager for The Co-operative Bank, Stuart Sutherland, worked with the family-run business over six months to understand their needs before heads of terms were agreed and signed.

Day Lewis is one of RBS CIB's strongest and longest-standing relationships in the South East, having been a client for the past 37 years. RBS CIB, comprising Colin Crisp, Corporate Director, South East and David Moxham, Director, Structured Finance worked with Day Lewis over an extended period to develop and deliver a funding package to meet the company's strategic objectives.

Kirit Patel MBE, Founder and Chief Executive of Day Lewis, said: "We are delighted with this support from our two banking partners.

"As part of a company itself with a large pharmacy business we felt The Co-operative Bank had a good insight in the sector and our specific needs and challenges, and I'm delighted to welcome them alongside the Royal Bank of Scotland which has supported us for much of the past 40 years.

"We have a clear strategy in place for growth and I'm delighted with the input and business support from both banking partners.  The loan has already facilitated the recent purchase of a number of pharmacies and will allow us to expand even further, consolidating our position as Europe's leading independent pharmacy chain."

Stuart Sutherland said: "Day Lewis has gone from strength to strength over the last three decades and we are pleased to help them further realise their ambitious expansion plans. We now look forward to building a long-term relationship with the company.

"This further illustrates benefits of dealing with The Co-operative because of its expertise in a wide range of sectors. We are also in a unique position of being able to offer businesses a broad range of products and services spanning sectors from legal and financial services to travel management and uniforms."

David Moxham, Director, Structured Finance Corporates - South, RBS CIB,

said: "Royal Bank of Scotland is delighted to continue our relationship with Kirit and his team and proud to support this high profile, successful, and significant business.  The refinancing marked the culmination of an extensive exercise and at the same time the start of the next chapter in this longstanding relationship."

Day Lewis is the largest, independent pharmacy chain in the UK and Europe employing over 1,300 staff. The business was founded in 1975 by Kirit Patel MBE and his brother JC Patel and remains a family-owned business to this day.  The company has recently featured in The Sunday Times Grant Thornton Top Track 250 league table, which shortlists Britain's leading mid-market private companies based on turnover.

Founder and Chief Executive Kirit Patel is a highly respected member of the pharmacy community with strong relationships across the sector.

The   Co-operative  offers  business  and  charities  a  diverse  range  of competitive  products  and  services  that  few  other companies can match.