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06/28/2022

Walgreens Boots Alliance to retain ownership of U.K.-based Boots business

Walgreens cited market instability severely impacting financing availability as a contributing factor in the decision to retain the U.K.-based Boots business.
Sandra Levy
Senior Editor
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Walgreens Boots Alliance today announced its decision to keep its Boots and No7 Beauty Company businesses under its existing ownership.

This marks the conclusion of the review that began in January in line with the company’s strategic priorities.

“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. 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. Consequently, WBA has decided that it is in the best interests of shareholders to keep focusing on the further growth and profitability of the two businesses," the company stated.

[Read more: Walgreens Boots Alliance reportedly begins strategic review of U.K.-based Boots]

The decision to retain the businesses also has been supported by the ongoing strong performance and growth of Boots and No7 Beauty Company, which Walgreens said, “have exceeded expectations despite challenging conditions."

Boots, the U.K.’s leading health and beauty retailer, benefits from its position as one of the most trusted and well-respected brands in the country. Since the formation of WBA at the end of 2014, the company has significantly invested in Boots and No7 Beauty Company. "Given their unmatched assets and unparalleled potential, Walgreens Boots Alliance will continue investing in the future of these two businesses," Walgreens said.

[Read more: Walgreens Boots Alliance raises guidance amid strong Q1 results]

“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 Walgreens 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 healthcare and beauty markets," she said.

“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,” Brewer said.

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