Walgreens Boots Alliance, Inc. (Nasdaq: WBA) 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 decision to retain the businesses has also been supported by the ongoing strong performance and growth of Boots and No7 Beauty Company, which have exceeded expectations despite challenging conditions.
Boots is the UK’s leading health and beauty retailer and benefits from its unique 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.
Rosalind Brewer, Chief Executive Officer, WBA 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 maximise shareholder value for these businesses and across our company.”