Walgreens Drops Plans to Shed Boots, No7 Beauty After Bids Fall Short
June 28 2022 - 8:52AM
Dow Jones News
By Colin Kellaher
Walgreens Boots Alliance Inc. on Tuesday said it is keeping its
Boots and No7 Beauty Co. businesses after failing to receive
adequate bids for the units.
The Deerfield, Ill., pharmacy chain, which launched a review of
its options for the businesses in January, said it received
significant interest from prospective buyers but that a sharp
decline in worldwide markets this year has put a severe crimp on
financing availability, and that no bidder was able to make an
offer that adequately reflects the potential value of the
businesses.
According to several published reports earlier this year, the
planned sale of Boots, the biggest U.K. pharmacy chain, was
expected to fetch upwards of $7 billion.
Walgreens said it decided that it is now in the best interests
of shareholders to focus on the further growth and profitability of
Boots and No7 Beauty, adding that the performance and growth of the
businesses have exceeded expectations despite challenging
conditions.
Walgreens shares, which closed Monday at $42.19, were recently
down 1.6% in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
June 28, 2022 08:37 ET (12:37 GMT)
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