Sainsbury's sells in-store pharmacies to Lloyds Pharmacies owner Celesio

Sainsbury's has agreed to sell its in-store pharmacies to Celesio, owner of Lloyds Pharmacies, for £125m.

The supermarket group said it was forming a "strategic partnership" with Lloyds as it would receive commercial annual rent payments for each of its 281 pharmacies, including 277 in-store pharmacies and four located in hospitals, all of which will be rebranded as LloydsPharmacy.

"Sainsbury's and LloydsPharmacy customers will benefit from an enhanced pharmacy service delivered from Sainsbury's stores with all the benefits of accessible parking, flexible opening hours and convenient locations."

The grocer said the deal was expected to complete by the end of February 2016, subject to regulatory conditions.