The private equity groups HIG and CapVest have expressed interest in acquiring the UK's largest pharmaceutical wholesaler, AAH Pharmaceuticals, which is up for sale again just three years after its last change of ownership, according to information provided by two people familiar with the matter to the Financial Times.

Aurelius, the German private equity firm that owns AAH, has hired advisors from BNP Paribas to oversee the sales process. AAH supplies a network of 14,000 pharmacies across the UK and generates annual sales of 3 billion pounds. HIG and CapVest are among a number of private equity groups vying for the company. The first indicative offers are expected by the end of September.

Aurelius is hoping for an enterprise value including debt for the company that corresponds to ten times this year's earnings before interest, taxes, depreciation, and amortization (EBITDA), estimated to be around 90 million pounds.

Aurelius, known for its strategy of acquiring distressed companies and spinning off unprofitable divisions, acquired AAH from McKesson for £477 million in 2021. Since then, the company has divested the pharmacy business Lloyds Pharmacy and sent the remaining part of the business into insolvency. However, at the same time, the wholesale arm AAH was successfully restructured, leading to a 60 percent increase in active customer accounts since 2022.

The sales process should be completed by the end of the year. However, it is possible that Aurelius will retain the company if the expected price is not met. AAH is attracting interest from bidders as it is likely to be the only comprehensive pharmaceutical wholesaler to come to market in the coming years.

AAH Pharmaceuticals delivers more than 10 million items to pharmacies across the UK each week and operates 11 local distribution centers.