LAWYERS from Irwin Mitchell’s Birmingham office have advised Redditch-based pharmaceutical distributor and retailer, Lexon (UK) on its acquisition of Norchem.
The family-run business, which has a turnover of £150 million and employs over 400 members of staff, purchased the Norchem group of companies for an undisclosed sum.
Lexon aims to grow its retail operation and expand its distribution network which already includes warehouses in Redditch and Leeds.
Based in Ferryhill, County Durham, Norchem was formed as a buying group in 1960 by six independent pharmacists. Currently, as well as the wholesale business, the company has 20 retail outlets across the North East.
The deal, which has been backed by the Royal Bank of Scotland (RBS) and RBS Invoice Finance in Birmingham, takes the total number of pharmacies operated by Lexon and associated businesses to 46.
Following the deal, the current management team at Norchem will remain in place.
Nick Dawson, corporate partner at the Birmingham office of national law firm Irwin Mitchell, supported by senior associate, Rob Laugharne, advised Lexon on the deal. Jon Bew and Natalie Barnes provided banking advice to Lexon.
Mr Dawson said: “Lexon is a great example of a successful family run business which has a clear vision and is determined to grow and build market share. It is already one of the leading pharmaceutical distributors in the UK and this deal will significantly boost its position.”
Pinsent Masons advised RBS and RBS Invoice Finance.
The shareholders of Norchem were advised throughout the deal by KPMG and Square One Law.