THE future of Boots is again uncertain following a £7.8billion takeover of its US owner by a private equity firm.
Pharmacy giant Walgreens Boots Alliance announced late on Thursday it had been acquired by Sycamore Partners at $11.45 (£8.85) a share.
Boots’ future is again uncertain following a £7.8billion takeover of its US owner by a private equity firm[/caption]
The price demonstrates a 90 per cent collapse in market value since the merger between Boots and Walgreens a decade ago.
It is understood Sycamore wants to keep the US retail business and sell or spin off the Boots international arm, including its No7 beauty brand.
Walgreens executive chairman Stefano Pessina, who engineered the Walgreens Boots Alliance creation, is rolling over his 17 per cent stake and investing more cash to maintain a minority stake.
It is thought Mr Pessina will spearhead a break-up of the company, which could see Boots listed on the stock market or owned separately with him still involved.
Walgreens has twice tried to sell Boots in the last three years.
Most recently it was placed with a £6billion price tag, but an auction was axed after bidders balked at the price.
Russ Mould, of analysts AJ Bell, said: “Sycamore is unlikely to keep Boots once the takeover completes.”
Boots has around 1,800 shops and more than 50,000 employees, all of whom will now face an uncertain period.
LLOYDS I.T. CULL
LLOYDS has warned 6,000 UK staff in its IT department their jobs are at risk — while it plans to create an IT hub in India with 4,000 workers.
The bank is restructuring so the employees have to reapply for their jobs.
Lloyds did not say how many redundancies there would be, but said its plans include 1,200 highly skilled IT jobs in the UK.
HOME COST DIP
HOUSE prices unexpectedly fell 0.1 per cent in February after a 0.6 per cent rise in January, Halifax said.
Analysts expected an increase as mortgage rates are stabilising.
Halifax said the fall was because a rush to complete purchases before stamp duty changes in April was fading.
Average prices rose 2.9 per cent annually, to £298,602 in February.
Unlock even more award-winning articles as The Sun launches brand new membership programme – Sun Club.
