Sunny

Sunny

max temp: 27°C

min temp: 13°C

ESTD 1874 Search

UK: Boots to go into US ownership

11:02 06 August 2014

Boots is set to fall into US ownership today when drugs store giant Walgreens unveils a deal to buy the part of the business it does not already own.

Boots is set to fall into US ownership today when drugs store giant Walgreens unveils a deal to buy the part of the business it does not already own.

Boots is set to fall into US ownership today when drugs store giant Walgreens unveils a deal to buy the part of the business it does not already own.

shares

The American retailer, which also trades as Duane Reade, is expected to spend about £5billion on the outstanding 55% stake in Alliance Boots, which comprises Boots the Chemist and pharmaceuticals distribution arm Alliance.

An announcement is expected later today, with Sky News also reporting that Walgreens will shun the opportunity to move its corporate headquarters to the UK or Switzerland, where it can pay less tax.

Walgreens acquired its 45% stake in Alliance Boots for 6.7 billion US dollars (£4bn) in 2012 and has the option to buy the rest by next August. The deal for full ownership of the business is expected to be completed in 2015.

Alliance Boots is also owned by executive chairman Stefano Pessina and private equity firm KKR after they took the Nottingham-based business private following an £11.1bn deal in 2007.

Walgreens trades from more than 8,500 locations across the US, while Alliance Boots has 2,500 stores and approximately 75,000 staff in the UK.

Boots brands such as No7 and Botanics are already sold in Walgreens and Duane Reade stores in the US, with the American firm’s products introduced to Boots stores as part of the deal in 2012.

Alliance Boots traces its roots back to 1849 when John Boot opened his first store selling herbal remedies in Goose Gate, Nottingham. It opened its 1,000th store in 1933 followed by the No7 cosmetics range two years later.

Boots Group merged with Alliance UniChem to form Alliance Boots in 2006 before it was taken private in Europe’s largest leveraged buyout a year later.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Dame Fiona Kendrick:, chief executive of Nestlé  UK & Ireland

Food giant Nestlé has announced plans to close its defined benefit pension scheme, sparking the threat of industrial action.

The Treasury has sold another 1% stake in Lloyds Banking Group.

The taxpayers’ stake in Lloyds Banking Group has fallen to below 16% after the Government sold off another tranche of shares.

The installation of solar panels on the roof of Precision Marketing Group's premises in Lamdin Road, Bury St Edmunds

A Suffolk-based firm will be among the organisations taking part in a nation-wide celebration of solar energy tomorrow.

Candy Gaga'’s Wanda Hewell, right, and daughter, Cherish.

Tower Ramparts in Ipswich now has its very own castle – thanks to the success of a local sweet shop business.

Stansted Airport

A report into the future of Britain’s airports does not rule out a second runway at Stansted – and raises fears of extra night flights to the Essex airport.

Growth in manufacturing eased last month  to its slowest level in two years.

Britain’s manufacturing sector grew at its slowest pace in more than two years last month, impacted by subdued demand from Europe.

Speedy Hire
 has warned that its results for this year will come in

Tool rental business Speedy Hire saw nearly a third of its stock market value wiped off after it announced the shock departure of its chief executive and warned over a major blow to full year profits.

Greene King chief executive Rooney Anand.

Pubs and brewing group Greene King today posted another year of record revenues, with sales within its key Retail division topping £1billion for the first time.

Suffolk Coastal considers convenience store bid

Planning chiefs have responded to concerns about noise and antisocial behaviour arising from proposals for a new convenience store in Kesgrave by insisting on closing times being brought forward an hour and the installation of a barrier to restrict overnight parking.

Tim Dunford, managing director and master brewer at the Green Jack Brewery, third from left, with Beer for Summer judges Mark Dorber, left, and Charlie McVeigh of The Draft House, right, and Peter Gordon, on trade director of Budweiser Budvar.

A Suffolk brewing company is celebrating after winning a new national “Beer for Summer” competition.

Most read

Most commented

Topic pages