Alliance Boots
2818107
226005775
2008-07-16T12:16:42Z
80.40.118.4
/* UniChem */
{{Infobox Company
| company_name = Alliance Boots Limited
| company_logo = [[Image:Alliance Boots logo.png]]
| company_slogan =
| vector_logo =
| company_type = Private
| genre =
| foundation = Alliance Boots 2006<br>[[Boots Group|Boots]] 1849<br>[[Alliance Unichem]] 1997
| founder = [[Jesse Boot]] - [[Boots Group|Boots]]<br>Merger - Alliance UniChem
| location = {{flagicon|UK}} [[Nottingham]], [[England]], [[United Kingdom|UK]]
| origins = Merger of Boots and Alliance UniChem
| key_people = Stefano Pessina - [[Executive Chairman]]
| area_served =
| industry = [[Pharmaceutical company|Pharmaceuticals]]<br>[[Healthcare]]<br>[[Beauty]]
| products = [[Boots Group|Boots]]<br>Alliance Pharmacy<br>No 7 - Makeup<br>Soltan - Sun cream<br>Almus - Generic Drugs
| revenue = No Figures
| operating_income = No Figures
| net_income = No Figures
| num_employees = ~100,000
| parent =
| subsid = [[Boots Group|Boots]]<br>[[Alliance UniChem]]
| owner =
| homepage = http://www.allianceboots.com
| footnotes =
}}
'''Alliance Boots Limited''' is a [[United Kingdom|British]] based [[Pharmaceutical company|pharmaceuticals]] company, operating as a high street retailer, [[pharmacist]] and pharmaceutical wholesaler. Alliance Boots is the leading pharmacy chain in [[United Kingdom|Britain]] with a 17% market share<ref name="bbc faq">[http://news.bbc.co.uk/1/hi/business/4303862.stm BBC News 3rd October 2005]</ref>. Retail operations are carried out under the Boots The Chemists and Alliance Pharmacy brands<sup>Note 1</sup>. Alliance Boots is also the largest pharmaceutical wholesaler in the UK through their UniChem subsidiary with a 40% market share.
As the third largest pharmacy chain in Europe, Alliance Boots employs over 110,000 staff and operates more than 3,200 retail stores, around 2,900 of these have pharmacies. Alliance Healthcare, Alliance Boots' pharmaceutical wholesale division, serves over 130,000 pharmacies, doctors, hospitals and health centres via over 370 depots. Alliance Boots is headquartered in London, [[England]]. In terms of retail space, Alliance Boots ranks as one of the largest high street retailers in the UK.
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 [[Pound sterling|£]]11[[1000000000 (number)|billion]]. Alliance Boots has become the first company on the [[FTSE 100]] share index to be bought-out by a private equity firm. On July 25, it was reported that [http://www.bloomberg.com/apps/news?pid=20601102&sid=abPIOg0EYQy0&refer=uk banks] that are part of the debt syndication have had trouble obtaining buyers for the debt. The company is now owned by AB Acquisitions Limited [http://ir.allianceboots.com/allianceboots/takeover_agm/].
{{TOClimit|limit=3}}
==Corporate Governance==
As of March 2008 the board of directors are:<ref>[http://www.allianceboots.com/main.asp?pid=1562 Alliance Boots Board of Directors]</ref>
*Stefano Pessina - [[Executive Chairman]]
*George Fairweather - Group [[Finance Director]]
*Ornella Barra - Wholesale and Commercial Affairs Director
*Steve Duncan - Community Pharmacy Director
*Dominic Murphy
*Marco Pagni
*Johannes Huth
*Mattia Caprioli
==Merger History==
{{main|Alliance UniChem}}{{main|Boots Group}}
Alliance Boots was formed followin the merger of a pan-European company, '''Alliance UniChem Plc''', and a British company, '''Boots Group PLC'''. Whilst the creation of Alliance Boots was billed as a "Merger" it was technically an acquisition of Alliance Unichem PLC by the Boots Group PLC, which then renamed itself "Alliance Boots".
Alliance UniChem was formed at the end of 1997, when Alliance Santé S.A. merged with the UK company UniChem PLC to form [[Alliance UniChem]] Plc, and between 1998 and 2006, Alliance UniChem expanded into additional markets throughout Europe and Russia with a widespread program of takeovers, resulting in the company expanding and entering the [[FTSE]] 100 share index in 2002.
Alliance Santé stems from Alleanza Salute Italia, which was founded in 1977 by present Alliance Boots Executive Chairman Stefano Pessina. Through his investment vehicle Alliance Santé Participations S.A, at the time of the merger Pessina owned just under 15% of Alliance Boots plc (some 145,300,001 shares) together with 299,108 shares Pessina holds personally. Ornella Barra, Stefano Pessina's partner and director of Alliance Santé Participations S.A owned 559,021 shares. Taken together, the couple owned 15.106% of Alliance Boots plc.
Boots The Chemists was founded in 1849 by John Boot and has remained an independent company from its inception through to the merger with Alliance UniChem. Boots has pursued unsuccessful strategies in pursuit of growth, such as locating Boots stores within larger Sainsbury’s out of town supermarkets <ref>[http://www.oft.gov.uk/Business/Competition+Act/Notifications/Boots+and+Sainsbury+notification.htm Office of Fair Trading - Notification by Sainsbury's and Boots]</ref> at one point even considering the sale of [[sex toys]] in Boots stores.<ref>[http://news.bbc.co.uk/1/hi/uk/3943779.stm BBC News] 22nd October 2004</ref>.
In October 2005 it was announced, after a short period of speculation amongst financial analysts, that Boots would merge with Alliance UniChem in a deal valuing both companies equally and said to be worth around £7 billion. <ref>[http://news.bbc.co.uk/1/hi/business/4304490.stm BBC News]</ref>
The merger process completed without any major intervention from the [[Office of Fair Trading]] on Monday [[July 31]] [[2006]], although 96 shops were sold to comply with a condition laid down by the OFT. Technically, the merger was in fact a takeover by Boots, with Boots Group PLC - the holding company of The Boots Company PLC - acquiring the entire share capital of Alliance UniChem and issuing 1.332 Boots Group PLC shares for every 1 Alliance UniChem share held.<ref name="ir">[http://production.investis.com/allianceboots/merger_arch/summ/ Alliance Boots IR]</ref> Upon completion of the process, Boots Group PLC renamed itself to Alliance Boots plc. The benefit of this process allowed The Boots Company PLC and Alliance UniChem Plc to remain intact under one parent company, and eliminating time consuming and expensive legal work which would have been necessary to merge the two companies together into one new company.
Following the merger process, former Boots Group shareholders held 50.2% of the new company, with former Alliance UniChem shareholders getting 49.8%.<ref name="ir" />
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 [[Lloydspharmacy]] Chain.
==Operations==
Alliance Boots operations are split into two areas, Retail and Wholesale.
===Retail Operations===
[[Image:Boots The Chemist At Gunwharf Quays.jpg|thumb|right|250px|A typical Boots store in [[Gunwharf Quays]], [[United Kingdom|UK]].]]
====Boots====
[[Image:Boots store interior.jpg|thumb|left|250px|Interior of a Boots store]]
'''Boots The Chemists''' forms the backbone of Alliance Boots retail operations, with all retail outlets planned to carry the Boots brand in future.<ref name="dl">[http://www.digitallook.com/cgi-bin/digital/security.cgi?username=&ac=&csi=10021 Digital Look] Accessed 2nd November 2006</ref> Boots has a history stretching back over 150 years and is a familiar sight on Britain's high streets.
Boots outlets are typically larger than those of Alliance Pharmacy, often occupying prominent high street / city centre locations. Most branches have a pharmacy (only 300 of 3000 stores do not) and focus on healthcare, personal care and [[cosmetics|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 professional quality prints. Larger stores usually offer a range of electrical equipment such as [[hairdryer]]s, [[curlers]] and foot massagers, whilst selected stores often offer a range of [[sandwiches]], baguettes, wraps, salads and beverages.
Over the last 3 years, Boots has opened 48 larger out of town stores<ref>[http://www.boots-the-chemists.co.uk/main.asp?pid=1673 Boots The Chemists Website]</ref> to compete with out of town supermarkets and electrical outlets, over the past few years, Boots have suffered intensive competition from the major supermarket chains, especially [[Tesco]] and [[ASDA]] stores featuring a pharmacy and photo processing area, and electrical retailers such as [[Argos]] and [[Dixons]] selling photographic and beauty electrical items. The pharmacy side of the business is also facing competition from community pharmacies with a stronger heathcare focus, such as Lloydspharmacy, Co-op and Rowlands.
'''Boots Healthcare''' - larger stores typically offer a variety of healthcare services in addition to dispensing prescriptions, such as [[influenza vaccine|flu vaccination]], [[Cholesterol]] screening, weight loss advice, hair retention treatment, smoking cessation advice and products, and [[Chlamydia infection|Chlamydia]] testing & treatment (private service). Boots is also a big player in the provision of services to Care Homes across the UK. Optician services are also offered in many larger stores, with Boots providing eye tests along with the sale of [[spectacles]] and [[contact lenses]]. Boots supplied 800,000 pairs of spectacles in 2005/2006<ref>[http://www.boots-the-chemists.co.uk/main.asp?pid=1674 Boots Opticians website information]</ref>
Boots has a well developed internet site [http://www.boots.com www.boots.com] which allows [[online shopping]] in the United States in [[North America]], [[Finland]], [[Iceland]], [[Norway]], [[The Netherlands]], [[Switzerland]], [[Romania]] in [[Europe]], [[Russia]], [[Taiwan]] and [[Hong Kong]] in [[Asia]] and [[New Zealand]] in [[Australasia]]. The [[United Arab Emirates]], [[Kuwait]], [[Thailand]] and [[Indonesia]] will be served by Boots online operation sometime in the future.<ref>[http://www.boots.com/microsites/microsite_homepage.jsp?contentId=3054&wblinktype=& Boots online country selection]</ref>
'''Advantage Card''' - billed as the most generous customer [[loyalty card]] in Britain, Boots Advantage card has 15,000,000 regular users<ref name="Us">[http://www.allianceboots.com/main.asp?pid=1470 Alliance Boots corporate information]</ref> and users earn 4 points (worth 1p each, so 4p per £1) for every £1 spent. (In Ireland, users earn 4¢ for every €1 spent).
====Alliance Pharmacy====
Alliance Pharmacies are typically smaller shops<ref>[http://news.bbc.co.uk/1/hi/business/4303862.stm BBC News]3rd October 2005</ref> focusing mainly on filling prescriptions, selling healthcare products and providing medical advice. Alliance Pharmacies tend to be in less prominent locations, closer to GP surgeries or located in housing estates rather than town centres, in locations more suited to the needs of those needing prescriptions and over the counter medicines. Alliance Pharmacy stores are to be re-branded to 'Your Local Boots Pharmacy'. The changes will begin in January 2008 with a completion date of April 2008 in time for the beginning financial year. <ref name="dl" />
=====Moss Pharmacies=====
'''E.Moss Limited''' was acquired by UniChem in 1991 and through 2005 was re-branded as Alliance Pharmacy. Any remaining Moss Pharmacy stores will be re-branded as Boots along with the Alliance Pharmacy stores.
====Internationally====
Alliance Boots operates a further 400 pharmacies in Norway, The Netherlands, Thailand, Republic of Ireland, Italy and Switzerland (through an associate) and has a presence in various other countries such as Russia, Romania, Canada and the USA through implants in other major retail partners.<ref name="Us" /> In Norway the group operates the [[Alliance Apotek]] chain with 127 outlets.
===Wholesale Operations===
====Boots Manufacturing====
'''Boots Manufacturing''' is the manufacturing subsidiary of the Boots Group and manufactures a range of own brand and third party cosmetic products, including the No 7, [[Kangol]], [[Toni & Guy]], [[FCUK]], Soltan and Botanics ranges of cosmetics. Some are sold through Boots outlets whilst others are sold through third party stores such as [[French Connection]]. Boots Manufacturing has plants in the UK, [[Germany]], [[France]] and [[Poland]]. Boots Manufacturing also produces Boots, No 7 and Soltan products for sale through outlets in North America.
'''BCM Cosmétique''' is the company's manufacturing division in [[France]].
'''BCM Kosmetik''' is the company's manufacturing division in [[Germany]].
====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 Boots distributes drugs and cosmetics to around 125,000 outlets and operates from 380 delivery depots. <ref name="Us" />
In addition to supplying Alliance Pharmacies, the Alliance Healthcare distribution subsidiaries also deliver to NHS central warehouses and hospitals in the UK, along with private [[hospitals]], GP surgeries, local health centres and private pharmacies throughout Europe, Asia and Australasia.
====Almus====
'''Almus''' is a brand of generic prescription drugs sold throughout the Alliance UniChem sphere of operations.
Almus is an umbrella brand for the wide range of lower cost generic medicines, which by the end of 2006 will total 200 different drugs and doses. 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 have won numerous awards for the design of their packaging and documentation.<ref name="almus">[http://www.almuspharmaceuticals.co.uk/content/en/mediaCentre/mediaCentreHome.html Almus Media Centre]</ref>
==Subsidiary Companies==
Alliance Boots plc is the direct parent company of The Boots Company PLC and Alliance UniChem Plc, with The Boots Company PLC and Alliance UniChem Plc remaining parent companies of their respective subsidiaries. There has been no change in the structure of either company during the merger process.
{{Alliance Boots}}
==Financial performance==
===Boots Group PLC===
{| class="wikitable" border="1" cellspacing="0" cellpadding="3" align="center" style="font-size: 70%;"
! Year ended
! Revenue (£m)
! Profit before tax (£m)
! Net profit (£m)
! Basic [[earnings per share|eps]] (p)
|-
| 31 March 2006 *
| 5,027.4
| 348.9
| 303.4
| 44.5
|-
| 31 March 2005
| 5,469.1
| 427.6
| 302.4
| 40.9
|-
| 31 March 2004
| 5,325.0
| 579.9
| 411.5
| 52.8
|-
| 31 March 2003
| 5,325.2
| 494.9
| 301.6
| 36.0
|-
| 31 March 2002
| 5,328.3
| 595.8
| 404.3
| 45.9
|-
| 31 March 2001
| 5,220.9
| 492.2
| 333.2
| 37.9
|-
| 31 March 2000
| 5,187.0
| 561.7
| 399.0
| 45.0
|}
<ref name="res">[http://production.investis.com/allianceboots/results/results_archive/ Alliance Boots Results Archive]</ref>
===Alliance UniChem Plc===
{| class="wikitable" border="1" cellspacing="0" cellpadding="3" align="center" style="font-size: 110%;"
! Year ended
! Revenue (£m)
! Profit before tax (£m)
! Net profit (£m)
! Basic [[earnings per share|eps]] (p)
|-
| 31 December 2005
| 9,171.2
| 278.9
| 211.3
| 58.3
|-
| 31 December 2004
| 8,898.4
| 253.0
| 187.7
| 52.3
|-
| 31 December 2003
| 8,799.3
| 209.9
| N/A
| 37.3
|-
|}
<ref name="res" />
==See also==
*[[Boots Group]]
*[[Alliance UniChem]]
==Notes==
<sup>Note A</sup>Alliance Pharmacy stores will be re-branded to Boots stores.<ref name="dl" />
==References==
{{reflist}}
==External links==
*[http://www.allianceboots.com Alliance Boots plc]
*[http://www.boots-the-chemists.co.uk Corporate website of Boots]
*[http://www.boots.com Boots the Chemists Online]
*[http://www.alliancepharmacy.co.uk Alliance Pharmacy]
*[http://www.yourfirststop.org Alliance Pharmacy - Your First Stop to Stop Smoking]
*[http://www.unichem.co.uk UniChem Wholesalers]
*[http://news.bbc.co.uk/1/hi/business/4301980.stm BBC News Coverage of the Merger]
[[Category:Companies established in 2006]]
[[Category:Retailers of the United Kingdom]]
[[Category:Wholesalers of the United Kingdom]]
[[Category:Kohlberg Kravis Roberts]]
[[de:Alliance Boots]]
[[fr:Alliance Boots]]