Drugs wholesaler Lexon UK has completed a £60m refinancing deal it says will help it meet growth targets in the coming years.

Lexon, which was established in 1995 and distributes medicines to independent pharmacies, is headquartered in Redditch and has distribution centres in Leeds, Durham and Dublin. Its most recent turnover was £240m.

The company says the £60m asset-based lending facility with HSBC UK will support its growth strategy, which includes investing in new technologies and “facilities to drive business development”. Lexon was advised by Clearwater International during the process.

The family-run business also owns Knights Pharmacies, a chain consisting of more than 90 stores, and generics manufacturer Key Pharmaceuticals. Over 1,200 people are employed across the business.

The company says that in the past two years it has concentrated on supporting pharmacies during the Covid-19 pandemic and has hosted a number of vaccination centres.

Lexon director Nimesh Sodha said: “"We are delighted to have completed this deal - it will help Lexon grow and continue to support independent pharmacies across the UK, as we have done for many years, in fresh and exciting ways.

"We are looking forward to what the future holds and would like to thank Clearwater for their support, as well as the commitment and hard work of the Lexon family for getting us to this point."

Joe Dyke, a partner at Clearwater International, said: “It was a pleasure to have supported Lexon in securing a flexible funding package.

“The facility will allow management to optimise its day to day funding whilst providing additional headroom for growth. 

“Lexon already holds a great position in the market and this facility will allow it to continue to develop this. We’d like to wish the team all the best.”