Alliance Boots

{{Main|Alliance Healthcare|Boots UK}}

Following a short period of speculation amongst financial analysts, it was announced in October 2005 that Boots Group would merge with Alliance UniChem in a deal valuing both companies equally and said to be worth around £7 billion.{{cite news |title=Alliance and Boots: a tale of two chemists |url=http://news.bbc.co.uk/1/hi/business/4304490.stm |publisher=BBC News |date=3 October 2005 |access-date=9 November 2012}} Rival firm Celesio, owner of the Lloyds Pharmacy chain, challenged the deal, although were rejected by the Competition Appeal Tribunal. The merger received final approval from the Office of Fair Trading in February 2006 and completed on 1 August 2006, although 96 shops were sold to comply with a condition laid down by the OFT. Former Boots Group shareholders held 50.2% of the new company, with former Alliance UniChem shareholders owning 49.8%.[http://production.investis.com/allianceboots/merger_arch/summ/ Alliance Boots IR] {{webarchive|url=https://web.archive.org/web/20070305063047/http://production.investis.com/allianceboots/merger_arch/summ/ |date=5 March 2007 }}

On 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 {{nowrap|£12.4 billion}}.{{cite news |title=Terra Firma drops Boots bid plan |url=http://news.bbc.co.uk/1/hi/business/6586583.stm |publisher=BBC News |date=24 April 2007 |access-date=9 November 2012}} Alliance Boots was the first company on the FTSE 100 share index to be bought-out by a private equity firm. Almost {{nowrap|£9 billion}} 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 {{nowrap|£1.4 billion}} in the buyout company. The reverse takeover and subsequent privatisation was dubbed as "the best deal ever struck" by a managing partner at a private equity firm in June 2008.{{cite news | url=http://www.efinancialnews.com/story/2008-06-23/alliance-boots-thrives-thanks-to-kkr-medicine | title=Alliance Boots thrives thanks to KKR medicine | work=Financial News | date=23 June 2008 | access-date=20 February 2012 | author=Lewis, Toby | author2=Craig, Catherine | quote=One managing partner at a rival private equity firm described Pessina’s de facto reverse takeover [...] and subsequent privatisation as the best deal ever struck.}}

Alliance Boots GmbH was established in Switzerland during 2008 and is a direct subsidiary of AB Acquisitions Holdings Limited, a company which owns 55% of Alliance Boots GmbH's shares.

It was announced on 19 June 2012 that Walgreens would purchase a partial stake in Alliance Boots, as the first step in a three-year merger plan. Walgreens paid $6.7 billion for this share, and subsequently on 6 August 2014 Walgreens exercised its option to complete the second step of its strategic transaction with Alliance Boots to create the first global pharmacy-led health and beauty retailer, with over 12,000 stores worldwide.{{cite news |title=Alliance Boots sells 45pc stake to Walgreens |author=Harry Wallop |url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9341323/Alliance-Boots-sells-45pc-stake-to-Walgreens.html |newspaper=The Telegraph |date=19 June 2012 |access-date=28 May 2013}} The two companies had established Walgreens Boots Alliance Development Company in late 2012 to further their integration. The first publicly visible sign of the merger came in November 2012 when Boots skincare brand No7 debuted in a Walgreens store in Los Angeles, with a view to further rolling out the Boots brand across the US.

Walgreens' shareholders approved the purchase on 29 December 2014, and it was completed on 31 December. Under the terms of the merger, the two companies became subsidiaries of a new holding company, Walgreens Boots Alliance Inc. which remains headquartered in Deerfield, Illinois. The new company is organised into four divisions, of which Walgreens and Boots each became one. The two remaining divisions are Pharmaceutical Wholesale and International Retail, which includes Alliance Healthcare, and Global Brands.{{cite web |url=http://www.globalhealthandwellbeing.com/strategic-partnership |title=Strategic partnership |year=2014 |publisher=Walgreens and Alliance Boots |access-date=28 September 2014}}

{{More citations needed section|date=September 2016}}

Alliance Boots operations are split into two areas, pharmacy-led health and beauty retailing and pharmaceutical wholesaling and distribution. The Group also has a stand-alone contract manufacturing business called BCM and increasingly develops and internationalises its product brands.{{cite web|url=http://www.chaindrugreview.com/front-page/newsbreaks/alliance-boots-good-progress-with-walgreens |title=Alliance Boots: 'Good progress' with Walgreens – Retail News Breaks – Front Page – Chain Drug Review :: Reporter for the Chain Drug Store Industry |publisher=Chain Drug Review |date=2013-05-15 |access-date=2014-08-22 |url-status=dead |archive-url=https://web.archive.org/web/20140826120228/http://www.chaindrugreview.com/front-page/newsbreaks/alliance-boots-good-progress-with-walgreens |archive-date=26 August 2014 }}

{{Main|Boots UK}}

File:Boots store interior.jpg

Boots UK formed the main retail business of Alliance Boots in the United Kingdom, and all former Alliance Pharmacy branches were 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 stores are located in prominent high street and city centre locations as well as in local communities. Most branches include a pharmacy, and focus on healthcare, personal care and cosmetic products, with most stores selling over the counter medicines.

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.

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.

Boots operates a loyalty card programme, the Boots Advantage Card, and claims to have 17.8 million regular users.{{cite web |url=http://www.retail-week.com/city-and-finance/financial-results/boots-full-year-profits-soar-despite-sales-fall/5049149.article |title=Retail Week |date=May 2013}}

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. Today, there are Boots branded stores in several countries including the UK, Norway, Ireland, The Netherlands, Thailand, as well as the Middle East.

Much of the Irish chain was acquired by purchasing Hayes Conyngham Robinson in 1998,[http://archives.tcm.ie/businesspost/2001/11/25/story437502828.asp Pharmacists join the ranks of millionaires] {{webarchive|url=https://web.archive.org/web/20090206164953/http://archives.tcm.ie/businesspost/2001/11/25/story437502828.asp |date=6 February 2009 }} although Boots had been present in Ireland prior to this. In 2013/2014, there were 76 stores in the Republic.{{cite news| url=http://www.rte.ie/news/business/2014/0411/608274-boots-expansion/ | work=RTE News | title=Boots Ireland to open three new shops in Cork and Dublin | date=11 April 2014}} In July 2011, an investigation by Ireland's National Consumer Agency found Boots to be the most expensive pharmacy for prescription drugs.{{cite news| url=http://www.independent.ie/national-news/chain-to-review-drug-charges-as-huge-price-gaps-uncovered-2817279.html | work=Irish Independent | title=Chain to review drug charges as huge price gaps uncovered | date=9 July 2011}}

In other countries (including Kuwait, Hong Kong, and the US), Boots products are sold from instore 'implants' in department stores and other pharmacies.

Alliance Healthcare formed the backbone of Alliance Boots wholesale and distribution service, with twice daily deliveries to more than 16,000 delivery points in the UK alone.{{cite web |url=http://www.retail-week.com/people/analysis-walgreens-executive-vice-president-alex-gourlay-profiled/5053550.article |title=Retail Week |date=October 2013}} Internationally, Alliance Healthcare supplies medicines, other healthcare products and related services to over 180,000 pharmacies, doctors, health centres and hospitals from over 370 distribution centres in 20 countries.{{cite web |url= http://www.german-retail-blog.com/topic/past-blogs/ever-bigger-alliance-boots-237 |title=German Retail Blog |date=May 2013}}{{cite web |url=http://www.retail-week.com/sectors/health-and-beauty/alliance-boots-targets-uk-independent-pharmacies-with-alphega-pharmacy-brand/5055728.article |title=Retail Week |date=December 2013}}

Almus is a brand of over 400 generic medications used both in human and veterinary applications. Initially launched in 2003 in the UK by the US based Almus family, the brand was bought by Alliance Healthcare in 2014.{{Cite web|date=2014|title=Almus – PRESS RELEASE|url=http://www.almus.co.uk/media|url-status=live|archive-url=https://web.archive.org/web/20130708070504/http://www.almus.co.uk:80/media |archive-date=8 July 2013 }} Almus has placed emphasis on the design of the packaging in an attempt to reduce errors by the dispensing pharmacist and by the patient relating to incorrect dosage which can result in either a dangerous accidental overdose or underdose, and has won awards for the design of their packaging and documentation.[http://www.almuspharmaceuticals.co.uk/content/en/mediaCentre/mediaCentreHome.html Almus Media Centre] {{webarchive|url=https://web.archive.org/web/20070211030256/http://www.almuspharmaceuticals.co.uk/content/en/mediaCentre/mediaCentreHome.html|date=11 February 2007}}

Almus has an average net profit of over $5 billion annually. In the three-year period prior to the sale of Almus, the US based founder, Dr. Patrick W. Almus, received nearly $9.5 billion in dividends, bonuses, and stock options. In the year 2011, Patrick Almus reported over $700 million in bonuses alone.{{Cite web|title=Almus Declares $650 million dollar dividend|url=https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/l0osS-63brfzro30rTvWFM13z22iXARwlnaP3EMwtx4/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3AZKFBLPY%2F20211001%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20211001T081459Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEH4aCWV1LXdlc3QtMiJHMEUCIQDiLDRb5Nu9YdcnViws5DZjly16yqXhCAYtpt74RbIFJAIgQp2NqM%2FgUjxuAd9CfUd6FMHtyXFt55M1TYanJLemTiUqgwQI5%2F%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FARADGgw0NDkyMjkwMzI4MjIiDBKpKfvVRaKABUO5SyrXAxmRUe0OyPmfS68xms7bRVgzsCbjURpNjm2V33f3J8RaBidba2LCxJDnY5Zi58nDv5dqTw1lFaAhWCrpy25%2Bnt2VnJCQGiVtqiWbo4UepHtxLWgzAyvFgr0Q9wLicEOJ2bhGm0ZnqPnndIqJlXgpguAdvnoWB7bfaNxUM5uZAjZkgNqK17KP4u17KmFjW6CXadIl1cCn%2BHezyhHzI5pcoBtUicvt%2ByEmTJHFYltJRcHeH95aDQMZjNM5sWWWX4iPdobGEUFHlbuvc%2BaUBQ%2FQMoxRlIH9qLWhvJ7vvJqEkV05n3onFLIRNXcpvtt5Zbeyg4jXQQ32oE8WwsH3xZ42krOnFoC3cfYajoaK7xWm88zmr01QWWw2vmJ%2B1LIBKqmIkXUuk%2BHHyHABCM2tc6wvXr3NMjfCNJAJKdTxzctHIX%2FfSYwwD0YIkFNGz43gWyLtpff04rQnBqKH%2F%2Fk3ZI6f%2BPqLgi32ffym7xRXJpEyOmLvDEXOXdVlGwGIFqb41KpzR5PGN8lb4gHFcWCkf53WeH3vM2EiZMrP34fBfMbG%2FGgKAII0HPnvOHH1vYVmcatw1q12ysdp5qkMBXNrYTYdxzFxwKJ2lCWPbumJQ%2FAgQwMuMv8NPyIKEDDbwdqKBjqlAe0OJFfTyLl%2B7o09RFeqQ%2BFkqeDhW74XhQdC7XN%2BmG3g0OkeOkLl4MgY4B2MK1oaFjwofCmawrj4vHcihm4hqhJZQU%2BRnj0e6Qt6CFWLG1Il%2FAM2DpsxunVHLzK0EZ4DDjnWF2wyFwIVEtLW%2By7UGnTK0xKekw8cZIEtb%2B9Jd5rZYCgnpjYsZPFWlJRz%2B76HeZd4iHdx2AI3DaJbHUbwasLiJ%2BXt9Q%3D%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=ae90f7d70853f875a7c8f76ca7f8acc88be1d2f8b5d0ae2ac25fdfbe4964c8d1}} In 2012 Almus received another $925 million in incentives and bonuses. At the time of the sale Almus had a valuation of over $15 billion. With the addition of RSU’s along with other option and retirement incentives Almus was paid approximately $7.25 billion upon the sale of Almus Pharmaceuticals.{{Cite web|date=2015|title=Almus Worth 16.25 billion dollars|url=https://www.sec.gov/Archives/edgar/data/1618921/000114036116083198/ex21.htm|url-status=live|archive-url=https://web.archive.org/web/20180217143347/https://www.sec.gov/Archives/edgar/data/1618921/000114036116083198/ex21.htm |archive-date=17 February 2018 }}{{Cite web|date=2013|title=ALMUS/PFIZER DEAL|url=http://www.almus.co.uk/web/guest/almus-reaches-10-year-milestone-in-the-UK|url-status=live|archive-url=https://web.archive.org/web/20130726155522/http://www.almus.co.uk:80/web/guest/almus-reaches-10-year-milestone-in-the-UK |archive-date=26 July 2013 }}

Almus donated over 500,000 Dexamethasone tablets during the COVID-19 crisis, at a value of nearly $62,000,000 USD. {{Cite web |date=2013 |title=DR.PATRICK ALMUS GIVES AWAY $60 MILLION OF COVID RELIEF |url=https://www.walgreensbootsalliance.com/news-media/our-stories/alliance-healthcare-uk-and-boots-uk-donate-lifesaving-medicine-nhs?keys=9i%209i%209i&page=0%2C3&search=}} Some reports allege that this was in response to the negative media publicity received by Dr. Almus when his family’s offshore holdings were exposed in the Panama Papers and Paradise Papers document leaks, showing ties to big oil, Bahamian and Swiss banks, ties to over 400 shell companies giving the implication of hiding family wealth in an effort to avoid taxation.{{Cite web|date=2024|title=ALMUS FAMILY HIDES BILLIONS OFFSHORE|url=https://offshoreleaks.icij.org/nodes/12134319}}

BCM Limited is the contract manufacturing business of Alliance Boots and manufactures a range of own-brand and third-party medicines, and cosmetic product ranges such as No 7, Kangol, 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.[http://www.bcm-manufacturing.com/about-bcm BCM] {{Webarchive|url=https://web.archive.org/web/20140925174955/http://www.bcm-manufacturing.com/about-bcm |date=25 September 2014 }}, bcm-manufacturing.com.

{{Unreferenced section|date=September 2016}}

Alliance Boots subsidiaries included:

• Alliance Healthcare Czech Republic
• Alliance Healthcare Deutschland
• Alliance Healthcare Distribution (UK)
• Alliance Healthcare España
• Alliance Healthcare France
• Alliance Healthcare Nederland
• Alliance Healthcare Norge
• Alliance Healthcare Russia
• Almus Pharmaceuticals
• Boots Ireland
• Boots Norge
• Boots Opticians (UK)
• Boots Thailand
• Boots UK
• Farmacias Ahumada (Chile)
• Farmacias Benavides (Mexico)
• Farmexpert (Romania)
• Hedef Alliance (Turkey/Egypt)
• Megapharm (Germany)

Alliance Boots also had associates and joint ventures in:

• Alliance Healthcare Italia (Italy)
• Alliance Healthcare Portugal
• Boots Hearingcare
• Guangzhou Pharmaceuticals (China)
• HydraPharm (Algeria)
• Oktal Pharma (Croatia)
• Walgreens Boots Alliance Development Company

Alliance Boots established its group headquarters in Switzerland in 2008, following the privatization of the company by Stefano Pessina and KKR's acquisition. It retained Boots' existing Nottingham head office as its UK operational headquarters. The company was accused of making the move for tax purposes, as Switzerland had more favourable tax regime than the United Kingdom,{{cite news|last1=Champion|first1=Gail|title=Switzerland's tempting tax regimes attract UK firms|url=https://www.bbc.co.uk/news/business-11618922|access-date=14 November 2015|publisher=BBC News|date=26 October 2010}} and in January 2011, protests were held by the UK Uncut group at a number of Boots stores, including its flagship London store, which was closed down by protestors.[http://www.demotix.com/news/574155/tax-exemption-protest-boots-london Tax exemption protest at Boots – London] {{webarchive|url=https://web.archive.org/web/20110203043214/http://www.demotix.com/news/574155/tax-exemption-protest-boots-london |date=3 February 2011 }}

The group's headquarters, listed as being on Baarerstrasse in Zug, were revealed to be a post office box within the town's post office. Alliance Boots itself stated that its Swiss headquarters reflected the international nature of its wider group and that it had an administrative office in Zurich. The Guardian reported in 2016 the findings of Richard Brooks, a former tax inspector, who it said found that the "headquarters" in Zug was "one of around 50 unrelated companies dealt with by a local business service company, the proprietors of which were none too pleased with the visit" and that no Boots employees were present.{{cite web|title=How Boots went Rogue|first=Aditya|last=Chakrabortty|url=https://www.theguardian.com/news/2016/apr/13/how-boots-went-rogue|access-date=16 February 2018|work=The Guardian|date=13 April 2016}}

Boots' former head of corporate finance, John Ralfe, stated that he believed "the UK has lost about £100 million a year in tax" due to the move to Switzerland. Boots defended itself by reaffirming that it was a British business registered for VAT.{{cite news|last1=Lawrence|first1=Felicity|title=How Boots' Swiss move cost UK£100m a year|url=https://www.theguardian.com/world/2010/dec/11/boots-switzerland-uk|access-date=14 November 2015|work=The Guardian|date=11 December 2010}} In 2013, campaign group War on Want said on its website "New research shows that Alliance Boots, the high street chemist and pharmaceutical giant, has avoided more than £1 billion in tax since it went private six years ago through taking on excessive debts, profit shifting and corporate restructuring."{{cite web|title=Boots' Billion Pound Tax Dodge|url=https://waronwant.org/media/boots-billion-pound-tax-dodge|access-date=16 February 2018|work=War on Want|date=14 October 2013}}{{cite web|title=Alliance Boots & the Tax Gap: The Case for Corporate Reform|url=https://waronwant.org/sites/default/files/AllianceBoots%20TaxGap.pdf|access-date=16 February 2018|work=War on Want|date=October 2013}}

While the takeover by Walgreens was being finalized, there was growing political pressure against the company moving its headquarters from Chicago to Switzerland as part of a tax inversion to reduce its tax bill. In August 2014, Walgreens confirmed it would retain its Chicago headquarters for the newly formed group.{{cite news|last1=Rankin|first1=Jennifer|title=Tax inversion takes a hit as Walgreen Alliance Boots stays in the US|url=https://www.theguardian.com/business/2014/aug/06/walgreens-buys-alliance-boots-9bn-pounds|access-date=14 November 2015|work=The Guardian|date=6 August 2014}}

• List of pharmaceutical companies

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