Historic Scottish pharmacy chain Davidsons Chemists swallows Lloyds branches on back of seven-figure finance deal

Major Scottish pharmacy chain Davidsons Chemists has been continuing its expansion after being prescribed a key finance deal.

Allan Gordon, MD of Davidsons Chemists, and Kim Campbell, partner in the healthcare team at Thorntons. Picture: contributed.

The business, which has branches from Portsoy in the North-east to Lockerbie in Dumfries and Galloway and is a ­Royal Warrant holder, has acquired five branches from Lloyds in a “substantial” seven-figure deal supported by independent Scottish law firm Thorntons.

Two of the new branches are located in Dundee, and one each in Kirriemuir, Montrose and Auchterarder – where it now owns the town’s two chemists – and the latest deal takes its total number of pharmacies to 56. Its network was boosted by its 2021 multi-million-pound acquisition of peer Newfield (Dundonald) and its six chemist branches.

Regarding the Lloyds transaction, it has now started rebranding the new premises, having already hired three new pharmacist managers for the branches that were being operated by a locum. Davidsons says their appointments will enable it to restore and upgrade their operations and provide greater certainty for local communities.

Davidsons, which is headquartered in Blairgowrie where its first branch opened in 1897, says its pharmacy services include prescriptions, vaccinations, smoking cessation, and minor ailment care.

Managing director Allan Gordon said: “We are making excellent progress with our five new branches, which we are rebuilding as valued local resources that will provide first-class community healthcare. Our new pharmacist managers are providing much-needed structure and continuity.

“As a business, we have significantly strengthened our position across the Tayside and Perthshire area following the acquisition from Lloyds.”

He also thanked Thorntons for its help with the deal. Kim Campbell, partner in the law firm’s healthcare team, said: “Davidsons Chemists’ acquisition is a great step forward for an ambitious, growing healthcare business. It’s extremely rewarding to have played a role in bringing these five branches into its ownership, which is set to have a positive impact on both the business and local communities. We wish Davidsons’ management team every success as they incorporate the new branches and develop the business.”

Thorntons has more than 500 staff and 71 partners across 13 Scottish offices including Glasgow – where it recently opened its first permanent office in the city – and Edinburgh. Last year it announced a merger with Edinburgh-based Stuart & Stuart WS, saying this would accelerate its growth in the Central Belt.