The Pharmaceutical Journal Vol 264 No 7080 p126
January 22, 2000 Business

Phoenix hints at further expansion in UK

Phoenix Medical Supplies Ltd wants to expand its operations in the United Kingdom and is looking for other independent companies to acquire. Speaking at a suppliers meeting in Birmingham on January 13, Dr Bernd Scheifele (chief executive, Phoenix Pharma- handel AG) said: "We want to expand our business in the UK market further. We think that the UK is a very interesting business and we just want more." Phoenix Pharmahandel was formed from the merger of five regional wholesalers in Germany in 1994. The company is a family owned business and is not quoted on the German stock exchange. Dr Scheifele emphasised that this was the way Phoenix worked: "We do not believe in big, hostile take-overs. We prefer smaller-scale acquisitions of unlisted companies."

Bernd Scheifele: we just want more

Following its acquisition of Philip Harris Medical, L. Rowland & Co and the Fosters group, Phoenix now has around 11 per cent of the UK wholesaling market, compared to 28 per cent for Alliance Unichem and 37 per cent for Gehe's subsiduary AAH, leaving 24 per cent in the hands of others, including Boots the Chemists.
Dr Scheifele said that there was still "lots of potential" in the UK for Phoenix. The company had decided to enter the UK market because of its size (the fourth largest market in Europe) and because good growth was expected here. It perceived that there was a demand for a third national wholesaler. In addition, Phoenix felt that, for strategic reasons, there was a need to compete against Alliance Unichem and Gehe.
Mr Roger Brown (managing director, Phoenix Medical Supplies) said that the UK wholesaling business was to be renamed Phoenix Healthcare Distribution. A new head office was to be established at Runcorn, Cheshire, next month. However, the company felt that its customers' goodwill was a great advantage and it would be retaining, and continuing to trade locally, under its old and trusted names, including George Foster (Burnley), Fosters Daniels, L. Rowland & Co, Philip Harris Medical, Bleasdales, Border Chemists Alliance and Hamiltons Pharmaceuticals.