Alliance Boots
Encyclopedia
Alliance Boots GmbH is a leading international, pharmacy-led health and beauty group. It has two core business activities - pharmacy-led health and beauty retailing, and pharmaceutical wholesaling and distribution - and has a presence in more than 25 countries. It has revenue in excess of £23.3 billion It was formed in 2006 through a merger of the listed British high street pharmacist Boots Group and the pan-European wholesale and retail pharmacy group Alliance UniChem. Alliance Boots was initially a British plc
listed on the London Stock Exchange
. In 2007 it was bought out in a private equity
transaction. In 2008 the trading business was transferred to a Swiss GmbH, which is a wholly owned subsidiary of a British company, AB Acquisitions Holdings Limited, which is owned by the private equity firm Kohlberg Kravis Roberts (KKR) and the Italian businessman Stefano Pessina, who built Alliance UniChem and is now the executive chairman of Alliance Boots.
The Group's operations are mainly carried out under the Boots and Alliance Healthcare brands. Boots UK is the UK's leading pharmacy-led health and beauty retailer. Alliance Boots is also the largest pharmaceutical wholesaler in the UK through its Alliance Healthcare (Distribution) Ltd business.
Alliance Boots employs over 115,500 staff and operates more than 3,280 retail stores, around 3,180 of these have pharmacies. Alliance Boots' pharmaceutical wholesale division serves over 160,000 pharmacies, doctors, hospitals and health centres via over 370 depots.
In October 2005 it was announced, after a short period of speculation amongst financial analysts, that Boots Group would merge with Alliance UniChem in a deal valuing both companies equally and said to be worth around £7 billion.
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.
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.
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.
Boots outlets are located in prominent high street/city centre locations as well as in local communities. Most branches have a pharmacy and focus on healthcare, personal care and cosmetic
products, with most stores selling over the counter medicine
s. Many stores also feature traditional photo processing and/or a Kodak picture kiosk where users of digital cameras and camera phones can create prints. Larger stores usually offer a range of electrical equipment such as hairdryers, curlers and foot massagers, whilst selected stores offer a range of sandwiches
, baguettes, wraps, salads and beverages.
Larger stores typically offer a variety of healthcare services in addition to dispensing prescriptions, such as flu vaccination, Cholesterol
screening, weight loss advice, hair retention treatment, smoking cessation
advice and products, and Chlamydia testing & treatment (private service). Optician services are also offered in many larger stores, with Boots Opticians providing eye tests along with the sale of spectacles and contact lenses.
Boots has an internet site, www.boots.com, which allows online shopping in the United Kingdom.
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).
, Taiwan
and Japan but only Thailand survives, as an independent chain.
Much of the Irish chain was acquired by purchasing Hayes Conyngham Robinson in 1998, although Boots had been present in Ireland prior to this. It has now 61 stores in the Republic.In July 2011, an investigation by Ireland's National Consumer Agency found Boots to be the most expensive pharmacy for prescription drugs.
In 2008, Boots started opening pharmacies in Norway. Now they have about 120 outlets known as Boots Apotek. (The name means Boots Pharmacy.)
In other countries (including Kuwait
, Hong Kong, Switzerland and the USA), Boots products are sold from instore 'implants' in department stores and other pharmacies. A new store has also opened in Dubai
, United Arab Emirates
and in Qatar
.
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.
In addition to the wholesale of medicines and other healthcare products, Alliance Healthcare provides services to pharmaceutical manufacturers who are increasingly changing and adapting their approaches to distribution, while at the same time outsourcing non-core activities. These services include pre-wholesale and contract logistics, direct deliveries to pharmacies, and specialised medicine delivery including related home healthcare.
In recent years it has entered the fast growing Russian and Chinese markets.
Almus is an umbrella brand for the wide range of lower cost generic medicines, which was initially launched in the UK in 2003. Alliance Boots has placed considerable emphasis on the design of the packaging in an attempt to reduce the number errors by the dispensing chemist and by the patient relating to incorrect dosage which can result in either a dangerous accidental overdose or an equally dangerous under dose. Almus has won numerous awards for the design of their packaging and documentation.
, 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.
No7 was launched in 1935: it continues to launch products.
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.
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)
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
. In 2007 it was bought out in a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
transaction. In 2008 the trading business was transferred to a Swiss GmbH, which is a wholly owned subsidiary of a British company, AB Acquisitions Holdings Limited, which is owned by the private equity firm Kohlberg Kravis Roberts (KKR) and the Italian businessman Stefano Pessina, who built Alliance UniChem and is now the executive chairman of Alliance Boots.
The Group's operations are mainly carried out under the Boots and Alliance Healthcare brands. Boots UK is the UK's leading pharmacy-led health and beauty retailer. Alliance Boots is also the largest pharmaceutical wholesaler in the UK through its Alliance Healthcare (Distribution) Ltd business.
Alliance Boots employs over 115,500 staff and operates more than 3,280 retail stores, around 3,180 of these have pharmacies. Alliance Boots' pharmaceutical wholesale division serves over 160,000 pharmacies, doctors, hospitals and health centres via over 370 depots.
Merger
Alliance Boots is a plc company specialising in a wide range of services for a different variety of peopleIn October 2005 it was announced, after a short period of speculation amongst financial analysts, that Boots Group would merge with Alliance UniChem in a deal valuing both companies equally and said to be worth around £7 billion.
The merger process completed without any major intervention from the Office of Fair Trading
Office of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
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 EquityPrivate equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm Kohlberg Kravis Roberts in conjunction with Alliance Boots' then Executive Deputy Chairman, Stefano Pessina, for an estimated £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
12.4billion
1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
. 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
Zug
Zug , is a German-speaking city in Switzerland. The name ‘Zug’ originates from fishing vocabulary; in the Middle Ages it referred to the right to ‘pull up’ fishing nets and hence to the right to fish.The city of Zug is located in the Canton of Zug and is its capital...
, 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 UncutUK Uncut
UK Uncut is a United Kingdom-based protest group established in October 2010 to protest against tax avoidance in the UK and to raise awareness about cuts to public services. Various sources have described the group as left-wing in its political orientation...
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
Boots UK
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 and focus on healthcare, personal care and cosmetic
Cosmetics
Cosmetics are substances used to enhance the appearance or odor of the human body. Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and toe nail polish, eye and facial makeup, towelettes, permanent waves, colored contact lenses, hair colors, hair sprays and...
products, with most stores selling over the counter medicine
Medicine
Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness....
s. Many stores also feature traditional photo processing and/or a Kodak picture kiosk where users of digital cameras and camera phones can create prints. Larger stores usually offer a range of electrical equipment such as hairdryers, curlers and foot massagers, whilst selected stores offer a range of sandwiches
Sandwiches
"Sandwiches" is a song by American electronic band Detroit Grand Pubahs. It reached number 29 in the Hot Dance Club Songs chart.- Track listing :...
, baguettes, wraps, salads and beverages.
Larger stores typically offer a variety of healthcare services in addition to dispensing prescriptions, such as flu vaccination, Cholesterol
Cholesterol
Cholesterol is a complex isoprenoid. Specifically, it is a waxy steroid of fat that is produced in the liver or intestines. It is used to produce hormones and cell membranes and is transported in the blood plasma of all mammals. It is an essential structural component of mammalian cell membranes...
screening, weight loss advice, hair retention treatment, smoking cessation
Smoking cessation
Smoking cessation is the process of discontinuing the practice of inhaling a smoked substance. This article focuses exclusively on cessation of tobacco smoking; however, the methods described may apply to cessation of smoking other substances that can be difficult to stop using due to the...
advice and products, and Chlamydia testing & treatment (private service). Optician services are also offered in many larger stores, with Boots Opticians providing eye tests along with the sale of spectacles and contact lenses.
Boots has an internet site, www.boots.com, which allows online shopping in the United Kingdom.
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
Since 1936, there have been Boots stores outside the UK. Stores in countries as widely spread as New Zealand, Canada (see Pharma Plus) and France were all closed in the 1980s. A new roll-out started in 1997 with the Netherlands, ThailandThailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
, Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
and Japan but only Thailand survives, as an independent chain.
Much of the Irish chain was acquired by purchasing Hayes Conyngham Robinson in 1998, although Boots had been present in Ireland prior to this. It has now 61 stores in the Republic.In July 2011, an investigation by Ireland's National Consumer Agency found Boots to be the most expensive pharmacy for prescription drugs.
In 2008, Boots started opening pharmacies in Norway. Now they have about 120 outlets known as Boots Apotek. (The name means Boots Pharmacy.)
In other countries (including Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
, Hong Kong, Switzerland and the USA), Boots products are sold from instore 'implants' in department stores and other pharmacies. A new store has also opened in Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
and in Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
.
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.
Alliance Healthcare
Alliance Healthcare is the backbone of Alliance Boots wholesale and distribution service, with twice daily deliveries to around 5,700 pharmacy shops in the UK alone. Internationally, Alliance Healthcare supplies medicines, other healthcare products and related services to over 150,000 pharmacies, doctors, health centres and hospitals from over 360 distribution centres in 16 countries.In addition to the wholesale of medicines and other healthcare products, Alliance Healthcare provides services to pharmaceutical manufacturers who are increasingly changing and adapting their approaches to distribution, while at the same time outsourcing non-core activities. These services include pre-wholesale and contract logistics, direct deliveries to pharmacies, and specialised medicine delivery including related home healthcare.
In recent years it has entered the fast growing Russian and Chinese markets.
Almus
Almus is a brand of generic prescription drugs sold in five countries.Almus is an umbrella brand for the wide range of lower cost generic medicines, which was initially launched in the UK in 2003. Alliance Boots has placed considerable emphasis on the design of the packaging in an attempt to reduce the number errors by the dispensing chemist and by the patient relating to incorrect dosage which can result in either a dangerous accidental overdose or an equally dangerous under dose. Almus has won numerous awards for the design of their packaging and documentation.
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, KangolKangol
Kangol is a British clothing company famous for its headwear.Founded in Cleator, Cumbria, England in 1938 by Jaques Spreiregen, Kangol produced hats for workers, golfers, and especially soldiers...
, Toni & Guy
Toni & Guy
- History :Toni & Guy is a global hairdressing and education business founded in London, United Kingdom in 1963 by brothers Giuseppe and Gaetano Mascolo. They were later joined by younger brothers Bruno and Anthony...
, FCUK, Soltan and Botanics. Some are sold through Boots stores whilst others are sold through third party stores such as French Connection
French Connection (clothing)
French Connection is a retailer and wholesaler of fashion clothing and accessories. Founded in 1972 by Stephen Marks it is based in London, is listed on the London Stock Exchange and operates globally....
and Toni & Guy
Toni & Guy
- History :Toni & Guy is a global hairdressing and education business founded in London, United Kingdom in 1963 by brothers Giuseppe and Gaetano Mascolo. They were later joined by younger brothers Bruno and Anthony...
. 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: it continues to launch products.
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 Chairman
- George Fairweather - Group Finance Director
- Marco Pagni - Group Legal Counsel & Chief Administrative Officer
- Ornella BarraOrnella BarraOrnella Barra is an Italian businesswoman. A Board Member of Alliance Boots and a qualified pharmacist, she has been involved in the healthcare industry for her entire career and is currently Chief Executive of the Pharmaceutical Wholesale Division of Alliance Healthcare...
- 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