Member Article

Sound advice dispensed in pharmacy deal

Swinburne Maddison LLP (Swinburne Maddison), a growing regional law firm, has announced the recent completion of a management buyout of a pharmacy business in South Tyneside, for an undisclosed sum.

On this latest deal, which saw the acquisition of the entire issued share capital of J Dinning (Jarrow) Limited (Dinnings), Swinburne Maddison acted on behalf of new owner, G Mayes Limited (a newly incorporated company established by Gillian Mayes). During the course of the deal the law firm advised on all corporate, commercial property and employment matters.

Gillian, is a familiar face at the pharmacy having worked there for the past eight years , before acquiring it from Mr and Mrs Bill Cowie, who had owned it since the 1980s. Mr Cowie and his wife have retained two further pharmacies in Washington and Chester-le-Street.

The well established Dinnings pharmacy, which will continue to trade under its current name, has had a presence in Jarrow since 1948, when it was founded by John Dinning. Currently employing 10 staff, it is located in the Mayfield Medical Centre on Park Road, Jarrow.

Funding for the deal was provided by Lloyds Bank.

Appointed following a number of recommendations and in recognition of the team’s experience in the sector, Swinburne Maddison’s full service approach ensured that the deal completed seamlessly. Corporate advice including a full due diligence exercise and the negotiation of the share purchase, was provided by partner, Martyn Tennant and solicitor, Sarah Carr. Jonathan Moreland from the firm’s employment team provided advice in connection with due diligence, while Gillian Moir from the commercial property team advised in connection with both the main pharmacy premises and the local ancillary storage property.

Tony Wentworth of Jacksons Law Firm advised the sellers.

Speaking about her new business and the acquisition process, Gillian Mayes said:

“Since becoming a pharmacist I have always wanted to have my own pharmacy and when Bill decided he wanted to sell the Jarrow outlet he was kind enough to offer me the opportunity to buy it.

“Swinburne Maddison has acted on a number of pharmacy deals in recent years and it was clear that they fully understand the sector. As someone who has never gone through this process the great support and sound legal advice I received from their highly experienced team was invaluable and I felt reassured that I was doing the right thing with the team behind me. I also received excellent support from Lloyds Bank.

“The role of the pharmacy is changing from merely dispensing medications. Instead, we now offer a wider range of services. However, my team and I are geared up to fully embrace the challenges that I’m sure lie ahead of us as our range of services continues to grow. I am looking forward to continuing to provide customers with the high quality of service they have come to expect from Dinnings over the years.”

Martyn Tennant, partner and head of Swinburne Maddison’s corporate team added:

“I am delighted that Gillian feels we have not only provided her with sound legal advice but have been generally supportive of her throughout the deal process. We pride ourselves on always taking an holistic approach with clients and being able to put an experienced and highly knowledgeable team at their disposal. “

Stuart Harper, healthcare relationship director at Lloyds Bank Commercial Banking, said: “We have worked closely with Gillian throughout the acquisition, and we look forward to seeing the business develop under its new ownership.

“At Lloyds Bank we are committed to helping healthcare businesses achieve their ambitions. That’s why we have a team of industry specialist relationship managers who can provide funding and support tailored to the needs of the sector.”

This was posted in Bdaily's Members' News section by Leigh Chelton .