Apteki Gemini may soon change their owners. Warburg Pincus wants to sell this chain of over 160 outlets, Puls Biznesu reports referring to Bloomberg agency.
Apteki Gemini valued at over PLN 2.5bn
According to the agency’s sources, Warburg Pincus is already working with advisors on this transaction. Its value may reach even €600m (PLN 2.6bn). Other private equity funds and industry investors are initially interested.
The reason for the withdrawal of Warburg Pincus from this investment may be a difficult situation on the pharmacy market, caused by legal regulations. The so-called pharmacy for a pharmacist, adopted in 2017, very limited the possibilities for the development of pharmacy networks. Additionally, the development is limited by demographic and geographical criteria.
Four-fold increase in the number of pharmacies
Apteki Gemini chain has more than 160 pharmacies. They operate throughout Poland. The company also operates one of the largest Internet pharmacies in Poland. According to the PMR report, in July 2019 the website aptekagemini.pl had over 2.2 million unique users. In 2018, the revenues of Gemini Hutter Sp. z o.o. amounted to PLN 486m. Individual pharmacies are also managed by subsidiaries.
Warburg Pincus Fund acquired the network in 2015. At that time it had about 40 outlets, operating mainly in Pomorze. In 2017, it took over total control over two Polish companies managing the network.