Gehe Continues Disposal Strategy

German pharmaceutical group Gehe, which took over Lloyds Chemists inJanuary this year (Marketletters passim), has sold its drug manufacturing arm Macarthy to Cinven, the management buy-out specialists, for L55.5 million ($90.5 million). Gehe has also disposed of Lloyds' Holland & Barrett health food chain, which was bought by US vitamin manufacturer NBTY for L100 million cash.

Macarthy is the last of three operations sold by Gehe. Michael Ward, chief executive of AAH UK, which runs the German company's operations in Britain, told the Financial Times that the group was delivering the disposal strategy announced with the acquisition of Lloyds. .Macarthy, whose principal trading subsidiary is Martindale Pharmaceuticals, is a supplier of injectable ophthalmic and narcotic products.