AAH on sale again, private equity firms compete to buy UK’s biggest pharmacy wholesaler

Private equity firms HIG and Capvest have joined the list of investors who have expressed interest in acquiring AAH Pharmaceuticals – the biggest supplier
of goods to British pharmacies.

The company, which was bought by German private equity firm Aurelius in 2022, is once again up for sale, according to the Financial Times.

Aurelius has hired advisers from BNP Paribas to run an auction process for the pharma giant, with the first round of indicative bids expected later this month,
the report said.

AAH Pharmaceuticals supplies a network of 14,000 pharmacies across the UK, generating £3bn a year in revenues.

Aurelius anticipated that the business could fetch an enterprise value, including debt, of roughly 10 times its earnings, which were projected to be around
£90 million this year.

People familiar with the matter told the publication that the business has drawn interest from bidders because it was likely to be “the only full-service pharmacy
distributor to come to market in the coming years.”

The auction process is expected to be completed by the end of the year, although Aurelius may decide not to sell the business if the offers do not meet their
desired price, the report said.