Walgreens Boots Alliance abandons plans to sell Boots
Walgreens Boots Alliance has abandoned plans to sell its Boots and No7 Beauty Company businesses.
The news follows a protracted auction process.
Subscribe to TRBIn a statement, the US company said: “As a result of market instability severely impacting financing availability, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No7 Beauty Company. ”
WBA said there had been significant interest from prospective buyers, but added: “Since launching the process, the global financial markets have suffered unexpected and dramatic change.”
According to a report by Sky News, a consortium of private equity company Apollo Global Management and Indian firm Reliance was the only bidder to make a binding offer.
WBA will now focus on Boots and No7’s growth and profitability. The company said the decision to ditch the plans was supported by the ongoing strong performances of Boots and No7 Beauty Company, which have exceeded expectations despite challenging trading conditions.
WBA chief executive Rosalind Brewer said: “We have now completed a thorough review of Boots and No7 Beauty Company, with the outcome reflecting rapidly evolving and challenging financial market conditions beyond our control.
“It is an exciting time for these businesses, which are uniquely positioned to continue to capture future opportunities presented by the growing healthcare and beauty markets.
“The board and I remain confident that Boots and No7 Beauty Company hold strong fundamental value, and longer term, we will stay open to all opportunities to maximize shareholder value for these businesses and across our company.”
