Alliance Boots

{{Infobox company | company_name = Alliance Boots | company_logo = | company_slogan = | vector_logo = | company_type = Private | genre = | foundation = Alliance Boots 2006Boots 1849Alliance Unichem 1997 | location = Zug, Switzerland | origins = Merger of the Boots Group and Alliance UniChem | key_people = Stefano Pessina (Executive Chairman) | area_served = | industry = PharmaceuticalsHealthcareBeauty | products = BootsNo7 - skincare and cosmeticsSoltan - SuncareAlmus - Generic Drugs | revenue = £23.3 billion (10/11) | operating_income =EBITDA £1.44 billion (10/11) | num_employees = 115,500

The merger process completed without any major intervention from the Office of Fair Trading on Monday 31 July 2006, although 96 shops were sold to comply with a condition laid down by the OFT.

Following the merger process, former Boots Group shareholders held 50.2% of the new company, with former Alliance UniChem shareholders getting 49.8%.

Despite the Office of Fair Trading not imposing any restrictive conditions on the deal, the merger only received final approval in February 2006 after the Competition Appeal Tribunal rejected rival firm Celesio's challenge to the deal. Celesio own the Lloyds Pharmacy Chain.

Acquisition by KKR

On the 25 April 2007, Alliance Boots was approached with a buy-out offer by New York City-based Private Equity firm Kohlberg Kravis Roberts in conjunction with Alliance Boots' then Executive Deputy Chairman, Stefano Pessina, for an estimated £12.4billion. Alliance Boots was the first company on the FTSE 100 share index to be bought-out by a private equity firm. Almost 9 billion pounds was advanced by investment banks, including Deutsche Bank, Citigroup, J.P. Morgan, UniCredit, Barclays, Merrill Lynch, the Bank of America and the Royal Bank of Scotland. Simultaneously the banks, as so-called "equity underwriters“, together invested around 1.4 billion pounds in the buyout company.

On 31 March 2008 Alliance Boots GmbH, of Zug, Switzerland, acquired the trading business from AB Acquisitions Holdings Limited (KKR and Pessina's acquistition vehicle) in exchange for the issue of share capital, and became a subsidiary of that company.

Tax Status

Alliance Boots has been accused of locating its headquarters in Switzerland solely to reduce its tax liabilities in the United Kingdom. In January 2011 protests were held at a number of Boots stores, including its flagship London store, which was closed down by protestors. The protest group UK Uncut claimed that Alliance Boots' Switzerland headquarters consists only of a post office box and that its relocation has reduced its annual tax liability by £86 million. Alliance Boots said that its new headquarters will better reflect the international nature of its wider group.

Operations

Alliance Boots operations are split into three areas, Health and Beauty Retail, Pharmaceutical Wholesale, and Contract Manufacturing.

Health and Beauty Retail operations

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Boots

Boots UK forms the backbone of Alliance Boots retail operations in the United Kingdom. All the former Alliance Pharmacy stores have now been rebranded as Boots. The Boots brand has a history stretching back over 160 years and is a familiar sight on Britain's high streets.

Boots outlets are located in prominent high street/city centre locations as well as in local communities. Most branches have a pharmacy

The company bills the Boots Advantage Card as the most generous customer loyalty card in Britain and has stated that it has 16.8 million regular users. Users earn 4 points (worth 1p each) for every £1 spent. (In Ireland, users earn 4c for every €1 spent).

Internationally

In Europe, Alliance Boots claims to be the clear market leader in pharmacy with stores in the UK, Norway, the Republic of Ireland, The Netherlands, Italy and Russia. It also has pharmacies in Thailand and its associates and joint ventures operate pharmacies in Switzerland, China, Lithuania and Italy.

Contract manufacturing operations

BCM

BCM Limited is the manufacturing subsidiary of Alliance Boots and manufactures a range of own-brand and third-party medicines, and cosmetic product ranges such as No 7, Kangol, Toni & Guy, FCUK, Soltan and Botanics. Some are sold through Boots stores whilst others are sold through third party stores such as French Connection and Toni & Guy. BCM has facilities in the UK, Germany, France and Poland.

BCM Specials manufactures bespoke non-licenced medicines for UK hospital and retail pharmacies.

Product brands

The Boots own brand range of products includes skincare, medicines, healthcare products and many more.

No7 was launched in 1935 and is now the UK's leading cosmetics and skincare brand. No7 continues to launch products, including most recently No7 Protect & Perfect Intense Beauty Serum.

Soltan is one of the UK's biggest selling suncare ranges and is also available in France, Italy, Spain and Portugal.

Botanics was first launched in the UK in 1995. It is a range of skin, hair, bath and body products.

Boots Laboratories Serum7 anti-ageing skincare range for independent pharmacy customers was successfully launched in France and Portugal in 2008/09. The Boots Laboratories skincare range will be launched in Spain and Italy in summer 2010, the latter in partnership with Procter & Gamble.

Subsidiary companies

Alliance Boots subsidiaries include:

Boots UK Boots Opticians (UK) Boots apotek (Norway) Boots Ireland Alliance apotheek (The Netherlands) Boots Thailand BCM Alliance Healthcare France Alliance Healthcare (Distribution) Ltd (UK) Hedef Alliance (Turkey, Egypt) Alliance Healthcare España (Spain) Alliance Healthcare Nederland (The Netherlands) Alliance Healthcare Russia Alliance Healthcare Czech Republic Alliance Healthcare Norge (Norway) Andreae-Noris Zahn: ANZAG (Germany) Megapharm (Germany)

Alliance Boots also has associates and joint ventures in:

Galenica (Switzerland) Alliance Healthcare Italia (Italy) Alliance Healthcare Portugal Guangzhou Pharmaceuticals Corporation (China) HydraPharm (Algeria)

Corporate governance

As of June 2010 the board of directors are:

Stefano Pessina - Executive

George Fairweather - Group Finance Director

Marco Pagni - Group Legal Counsel & Chief Administrative Officer

Ornella Barra - Chief Executive, Pharmaceutical Wholesale Division

Alex Gourlay - Chief Executive, Health & Beauty Division

Dominic Murphy - Kohlberg Kravis Roberts

Mattia Caprioli - Kohlberg Kravis Roberts

Sergio D'Angelo - Kohlberg Kravis Roberts

Nick Land - Non-executive Director

Chris Britton - Non-executive Director

Tony De Nunzio - Non-executive Director

Etienne Jornod - Non-executive Director

See also

Boots Group

References

External links

Alliance Boots

Boots UK

Alliance Healthcare Wholesalers

BCM

Boots e-commerce

Category:Companies of Switzerland Category:Wholesalers Category:Private equity portfolio companies Category:Companies formerly listed on the London Stock Exchange Category:Kohlberg Kravis Roberts companies Category:Companies established in 2006 *