The Unicare chain of pharmacies was yesterday sold to German group Gehe more than four months after the collapse of an earlier €152 million deal.
The exact value of yesterday's transaction was not disclosed but parties involved said it was approximately 5 per cent lower than the previously agreed price, meaning the company changed hands for around €145 million.
The conclusion of the sale means Gehe is now set to virtually dominate the pharmacy business in the Republic.
The group also owns the second-largest pharmaceutical wholesaler in the State, Cahill May Roberts.
In the past 18 months it also acquired 17 outlets owned by the Crowley's and Ryan's chains.
In March, Unicare served a statement of claim in the High Court to enforce an earlier sale agreement which collapsed following the deregulation of the pharmaceutical industry in Ireland in January.
Gehe had argued that deregulation of the industry, announced in January, meant Unicare was worth less than the €152 million price that had been agreed by both parties.
Before deregulation, legislation restricted the number of pharmacies in each area.
The initial deal had involved a sale price of €152 million comprising an upfront payment of €125 million and a further €27 million relating to Unicare reaching certain performance targets.
Gehe initiated the process when it approached Unicare regarding a possible takeover in March 2001. At that time, Unicare was examining funding options for expansion.
After deregulation Gehe was unwilling to go ahead with the original deal.
But led by Mr Fergus Hoban, Unicare claimed its contract with Gehe provided for the possibility of liberalisation in the manner taken by the Government.
While this had an impact on the sale price, sources at the time said it was minimal.
Mr Hoban established the O'Riada pharmacy group in 1991 and expanded it to 16 outlets before it merged with the Bates chain in 1998 forming the 29-strong Unicare chain.
Last night, Mr Hoban (32) said in a statement he was delighted the matter was now closed but "extremely annoyed" he had had to revert to the threat of litigation which resulted in a lot of management and consultancy time being wasted.
He added he would now be looking at investing in, and developing, other healthcare ventures.
A brief joint statement from Unicare and Gehe said: "The parties are pleased to announce that they have now been able to resolve the matters which prevented completion of their transaction in March 2002."
