06.29.22
With recession clouds gathering, Walgreens Boots Alliance (WBA) has decided not to sell Boots, the British drugstore chain. Boots is best known for its No7 Beauty Company.
WBA insisted there were suitors, but no offer emerged that “adequately reflects the high potential value of Boots and No7 Beauty Company,” according to the company. At the same time, WBA said the decision to keep the business was supported by the ongoing strong performance and growth of Boots and No7, which exceeded expectations despite challenging conditions during the pandemic.
Potential buyers were said to include India’s Reliance Industries and US private equity investor Apollo Global Management. The joint offer was in the $5-$6 billion range. In the past two weeks, Reliance is said to be interested in Revlon, which filed for bankruptcy this month.
“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,” said CEO Rosalind Brewer. “It is an exciting time for these businesses, which are uniquely positioned to continue to capture future opportunities presented by the growing health care 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.”
Walgreens acquired a stake in Boots, the 173-year-old British nationwide chain in 2012, becoming the majority owner two years later, but pandemic-induced struggles led it to look to sell the businesses as its new CEO planned to focus on US-based healthcare and wellness.
WBA insisted there were suitors, but no offer emerged that “adequately reflects the high potential value of Boots and No7 Beauty Company,” according to the company. At the same time, WBA said the decision to keep the business was supported by the ongoing strong performance and growth of Boots and No7, which exceeded expectations despite challenging conditions during the pandemic.
Potential buyers were said to include India’s Reliance Industries and US private equity investor Apollo Global Management. The joint offer was in the $5-$6 billion range. In the past two weeks, Reliance is said to be interested in Revlon, which filed for bankruptcy this month.
“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,” said CEO Rosalind Brewer. “It is an exciting time for these businesses, which are uniquely positioned to continue to capture future opportunities presented by the growing health care 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.”
Walgreens acquired a stake in Boots, the 173-year-old British nationwide chain in 2012, becoming the majority owner two years later, but pandemic-induced struggles led it to look to sell the businesses as its new CEO planned to focus on US-based healthcare and wellness.