The Irish pharmacy sector continues to show steady, confident M&A activity. Fitzgerald Power’s Irish Pharmacy Sector M&A Review: H1 2025 analyses trends from Q3 2022 through Q2 2025, examining transaction volumes, valuation multiples, buyer activity, and market conditions. The findings highlight a resilient and maturing market shaped by consolidation, regional shifts, and evolving ownership dynamics.

1. Transactions

  • Around 100 pharmacy transactions took place between H2 2022 and H1 2025.

  • Fitzgerald Power advised on 44 of these sales, demonstrating deep engagement in sector activity.

  • Larger pharmacies (with annual State dispensing fees ≥ €250K) accounted for the majority of deals, showing a clear move toward higher-value transactions.

  • Mid-range transactions (€175K–€249K) increased, while smaller and low-value deals declined.

  • Independently owned pharmacies continued to dominate sales, though corporate acquisitions rose steadily.

  • Regional trends:

    • Leinster (excluding Dublin): Most active region, up from 22% to 38% of transactions.

    • Munster: Continued growth, rising to 31%.

    • Dublin: Sharp decline in activity from 32% to 15%.

    • Connacht/Ulster: Decreased from 24% to 15%.

2. Valuation Multiples

  • The average multiple over the three-year period was 4.92x EBITDA, showing consistency year over year.

  • Valuations rose with scale:

    • <€1m turnover: 3.69x

    • >€1m – <€1.5m: 4.93x

    • >€1.5m – <€2m: 5.13x

    • >€2m: 5.67x

  • Regional differences:

    • Dublin achieved the highest average multiple (5.28x).

    • Leinster (ex-Dublin): 5.05x

    • Munster: 4.85x

    • Connacht/Ulster: 4.64x

  • Stability in multiples suggests continued investor confidence and market maturity.

3. Buyers

  • Of the 44 transactions reviewed:

    • 26 were purchased by independents.

    • 18 were purchased by pharmacy groups (holding six or more pharmacies).

  • Independent buyers:

    • Average valuation multiple: 4.75x

    • Typically acquired smaller-scale pharmacies.

  • Group buyers:

    • Average valuation multiple: 5.17x

    • More active in acquiring larger pharmacies with turnover above €2m.

  • The data shows continued independent ownership alongside increasing group consolidation.

4. The Pharmacy Market

  • The total number of community pharmacies remained stable throughout the review period.

  • PSI data:

    • 69 openings and 66 closures between Q3 2022 and Q2 2025.

    • Net increase to 1,908 pharmacies by mid-2025.

  • Highest count: Q1 2023 – 1,913 pharmacies.

  • Lowest count: Q1 2025 – 1,903 pharmacies.

  • Market stability suggests a balance between consolidation and new openings, maintaining overall service availability.

5. Outlook for the Remainder of 2025

  • Falling interest rates are encouraging more M&A activity among all buyer categories.

  • Hybrid deal structures (e.g., staged payments, shared ownership) are becoming common, supporting first-time buyers entering the market.

  • Local mergers continue, with smaller units absorbed into nearby businesses – maintaining customer service while improving efficiency.

  • The new Community Pharmacy Agreement (September 2025) is expected to affect valuations as reimbursement models evolve.

  • Future focus: Assessing the quality and sustainability of earnings will become a key factor in valuations and due diligence.

Conclusion

The first half of 2025 reflects a stable, confident pharmacy sector with consistent deal activity and firm valuations. Larger transactions are becoming more common, regional trends are shifting, and hybrid ownership models are enabling broader market participation. The sector’s resilience and adaptability position it well for sustained performance into 2026.