THE WHAT? Walgreens Boots Alliance (WBA) has concluded a strategic review, announcing it will retain ownership of its Boots and No7 Beauty Company under its existing ownership.
THE DETAILS While buy-out bids were posed by the likes of Apollo and Reliance Consortium, and a consortium of the Issa brothers and TDR Capital, WBA cited the unstable financial markets as a catalyst for the withdrawal of the sale.
The company said, “WBA has been encouraged by productive discussions held with a range of parties, receiving significant interest from prospective buyers. However, since launching the process, the global financial markets have suffered unexpected and dramatic change.”
THE WHY? The sale abandonment is a result of market instability, according to WBA. This is said to have severely impacted financing availability.
WBA said, “No third party has been able to make an offer that adequately reflects the high potential value of Boots and No7 Beauty Company.”
Chief Executive Officer, Rosalind Brewer, continued, “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.”