G Square Healthcare Private Equity has closed a £500 million single-asset continuation fund for Pharmacy2U, the UK’s largest online pharmacy.
The Continuation Fund was led by Coller Capital, alongside a syndicate of blue-chip institutional investors. G Square Capital IV is co-investing in addition to the continuation fund, together with a group of reinvesting Pharmacy2U shareholders and continued commitments from the management team.
Founded in 1999, Pharmacy2U has built a digital pharmacy platform, catering to more than two million patients and dispensing over 3.5 million items monthly. The business today offers a broad range of NHS and private health services, alongside consumer and pet health products.
G Square stated that the continuation fund “provides capital to support Pharmacy2U’s next chapter, including continued M&A activity, further investment in technology and automation, and expansion of clinical services. The transaction also delivers liquidity to existing limited partners, while allowing those who wish to do so to maintain participation in the company’s ongoing growth.”
G Square partner Oliver Hoenich said: “Pharmacy2U is a category-defining business, and this transaction represents a landmark moment for the firm. Over our partnership, the team has transformed Pharmacy2U into the undisputed leader in UK digital pharmacy, with a differentiated technology platform, deep operational capability and a compelling patient proposition.
“We are delighted to welcome Coller Capital, our syndicate investors and co-investors as partners in the next phase of this journey, and to continue backing an exceptional management team. This transaction is a strong endorsement of the business and of G Square’s healthcare investment strategy.”
Deirdre Burns, executive chair at Pharmacy2U, commented: “This is a significant milestone for Pharmacy2U and a powerful vote of confidence in our team, our technology and the opportunity ahead. With the continued backing of G Square and the support of a high-quality group of new investors, we are exceptionally well positioned to accelerate growth, invest further in innovation and continue delivering outstanding care for the millions of patients who rely on us every day.”
David Jolly, partner at Coller Capital, added: “Pharmacy2U is a high-quality business at the forefront of UK digital healthcare. It embodies the characteristics we look for in long-term investments: market leadership, strong fundamentals, and multiple avenues for continued growth.
“We are pleased to partner with G Square and the management team, who have built an exceptional business, as Pharmacy2U continues to scale its platform and services.”
Lazard was exclusive financial advisor to G Square on the transaction. Proskauer and Goodwin were legal advisors to G Square. Also advising were: McKinsey (commercial), PwC (financial and tax), Crosslake (technology) and Newmarket (regulatory matters). Law firm Akin advised Coller Capital.