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Alliance Boots Limited
Type Private
Founded Alliance Boots 2006
Boots 1849
Alliance Unichem 1997
Founder Jesse Boot - Boots
Merger - Alliance UniChem
Headquarters Flag of the United Kingdom Nottingham, England, UK
Key people Stefano Pessina - Executive Chairman
Industry Pharmaceuticals
Healthcare
Beauty
Products Boots
Alliance Pharmacy
No 7 - Makeup
Soltan - Sun cream
Almus - Generic Drugs
Revenue No Figures
Operating income No Figures
Net income No Figures
Employees ~100,000
Subsidiaries Boots
Alliance UniChem
Website http://www.allianceboots.com

Alliance Boots Limited is a British based pharmaceuticals company, operating as a high street retailer, pharmacist and pharmaceuticals wholesaler. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page may be out of date Year 1849 ( MDCCCXLIX) was a Common year starting on Monday (link will display the full calendar of the Gregorian calendar (or a Common This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page is likely to be out of date Year 1997 ( MCMXCVII) was a Common year starting on Wednesday (link will display full 1997 Gregorian calendar An entrepreneur is a person who has possession over a company enterprise, or Venture, and assumes significant accountability for the inherent risks and the outcome This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page may be out of date Nottingham ( is a city in the Ceremonial county of Nottinghamshire, England. England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" Health care is the prevention treatment and management of illness and the preservation of mental health through the services offered by the medical, Nursing NOTICE TO WOULD-BE-ROMEOS*************** In Marketing, a product is anything that can be offered to a Market that might satisfy a want or need This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page may be out of date In business revenue or revenues is Income that a company receives from its normal business activities usually from the sale of goods and services In financial and business Accounting, earnings before interest and taxes (EBIT is a measure of a firm's profitability that excludes interest and income tax expenses Net income is equal to the Income that a firm has after subtracting costs and Expenses from the total Revenue. Employment is a Contract between two parties, one being the employer and the other being the employee. A subsidiary, in business matters is an entity that is controlled by a bigger and more powerful entity This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page may be out of date This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page is likely to be out of date A website (alternatively web site or Web site, a back-construction from the Proper noun World Wide Web) is a collection of Web pages The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Pharmacists are Health professionals who practice the art and science of Pharmacy. Alliance Boots is the dominant pharmacy chain in Britain with a 17% market share[1]. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Retail operations are carried out under the Boots The Chemist and Alliance Pharmacies brandsNote 1. Alliance Boots is also the largest pharmaceuticals wholesaler in the UK through their UniChem subsidiary with a 40% market share.

As the third largest pharmacy chain in Europe, Alliance Boots employs around 100,000 staff and operates around 3,000 retail stores, around 2,700 of these have pharmacies. Around 380 depots support this retail network. Alliance Boots is headquartered in Nottingham, England. Nottingham ( is a city in the Ceremonial county of Nottinghamshire, England. England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland In terms of retail space, Alliance Boots ranks as one of the largest high street retailers in the UK.

On the 25th April 2007, Alliance Boots was approached with a buy-out offer by New York City-based Private Equity firm Kohlberg Kravis Roberts, for an estimated £11billion. Events 1607 - Eighty Years' War: The Dutch fleet destroys the anchored Spanish fleet at Gibraltar. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. The City of New York In Finance, private equity is an Asset class consisting of equity Securities in operating companies that are not Publicly traded on Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City -based Private equity firm that focuses primarily on late-stage Leveraged The Pound Sterling ( symbol £; ISO code: GBP) subdivided into 100 pence (singular penny) is the Currency Alliance Boots has become the first company on the FTSE 100 share index to be bought-out by a private equity firm. The FTSE 100 Index (ˈfʊtsiː footsie, abbreviated Financial Times Stock Exchange Index) is a Share index of the 100 most highly capitalised On July 25, it was reported that 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 [1].

Contents

Corporate Governance

As of March 2008 the board of directors are:[2]

Merger History

Main article: Alliance UniChem
Main article: Boots Group

Alliance Boots was formed followin the merger of a British company, Boots Group PLC, and a pan-European company, Alliance UniChem Plc. Events in March American Red Cross Month Fire Prevention month ( The Philippines) Women's History Month ( United 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page is likely to be out of date This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page may be out of date 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. This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page is likely to be out of date

Alliance Santé stems from Alleanza Salute Italia, which was founded in 1977 by present Alliance Boots Executive Deputy Chairman Stefano Pessina. Through his investment vehicle Alliance Santé Participations S. A, Pessina now owns 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 owns 559,021 shares. Taken together, the couple own 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. Year 1849 ( MDCCCXLIX) was a Common year starting on Monday (link will display the full calendar of the Gregorian calendar (or a Common Boots has pursued unsuccessful strategies in pursuit of growth, such as locating Boots stores within larger Sainsbury’s out of town supermarkets [3] at one point even considering the sale of sex toys in Boots stores. A sex toy is an object or device that is primarily used in facilitating human sexual pleasure. [4].

In October of 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. [5]

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. The Office of Fair Trading ( OFT) is a Non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, Events 30 BC - Battle of Alexandria: Mark Antony achieves a minor victory over Octavian 's forces but most of his army subsequently Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. 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. [6] 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 hold 50. 2% of the new company, with former Alliance UniChem shareholders holding 49. 8%. [6]

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. Lloydspharmacy is the largest community Pharmacy operator in the UK.

Operations

Alliance Boots operations are split into two areas, Retail and Wholesale.

Retail Operations

A typical Boots store in Gunwharf Quays, UK.
A typical Boots store in Gunwharf Quays, UK. Gunwharf Quays is an area of Portsmouth, Hampshire, now home to a large Shopping centre. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located

Boots

Interior of a Boots store
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. [7] 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 cosmetic products, with most stores selling over the counter medicines, 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. Medicine is the art and science of healing It encompasses a range of Health care practices evolved to maintain and restore Human Health by the Photographic processing is the Industrial process by which conventional Photographic film is treated after Photographic exposure in order to produce the Eastman Kodak Company ( is an American multinational Public company which produces imaging and photographic materials and equipment Larger stores usually offer a range of electrical equipment such as hairdryers, curlers and foot massagers, whilst selected stores often offer a range of sandwiches, baguettes, wraps, salads and beverages. A blowdryer or hairdryer is an Electromechanical device designed to blow cool or hot Air over wet or damp Hair, in order to accelerate the A hair iron or hair tong is a tool used to change the structure of the Hair with the help of heat A sandwich is a food item made of two or more slices of Bread with one or more layers of a filling

Over the last 3 years, Boots has opened 48 larger out of town stores[8] 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. Tesco plc is a British -based international grocery and general merchandising retail chain Asda is a United Kingdom Supermarket chain which retails food clothing and general merchandise Argos ( Greek: Ἄργος, Árgos ˈaɾɣos is a city in Greece in the Peloponnese near Nafplio, which was its historic harbor 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 flu vaccination, Cholesterol screening, weight loss advice, hair retention treatment, smoking cessation advice and products, and Chlamydia testing & treatment (private service). A Vaccine is an Inoculation designed to increase immunity against a specific disease Cholesterol is a Lipid found in the Cell membranes and transported in the Blood plasma of all Animals It is an essential component of mammalian 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. Glasses, also called eyeglasses or spectacles, are frames bearing lenses worn in front of the Eyes normally for vision correction, A contact lens (also known simply as a contact) is a corrective, cosmetic, or therapeutic lens usually placed on the Cornea Boots supplied 800,000 pairs of spectacles in 2005/2006[9]

Boots has a well developed internet site 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. Online shopping is the process consumers go through to purchase products or services over the Internet. Finland, officially the Republic of Finland ( is a Nordic country situated in the Fennoscandian region of northern Europe. Iceland, officially the Republic of Iceland ( ( Ísland or Lýðveldið Ísland ( Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands Switzerland (English pronunciation; Schweiz Swiss German: Schwyz or Schwiiz Suisse Svizzera Svizra officially the Swiss Confederation Romania ( dated: Rumania, Roumania Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending Taiwan ( Taiwanese: Tâi-oân/Tāi-oân (historically 大灣/台員/大員/台圓/大圓/台窩灣 is an Island in East Asia. Hong Kong ( officially the Hong Kong Special Administrative Region, is a territory located on China 's south coast on the Pearl River Delta, and borders New Zealand is an Island country in the south-western Pacific Ocean comprising two main landmasses (the North Island and the South Island Australasia is a Region of Oceania: New Zealand, Australia, Papua New Guinea, and neighbouring Islands in the Pacific The United Arab Emirates, Kuwait, Thailand and Indonesia will be served by Boots online operation sometime in the future. The State of Kuwait ( دولة الكويت IPA [dawlatt̪ alkuwajt̪]) is a sovereign Arab Emirate on the coast of the Persian Gulf, enclosed The Kingdom of Thailand (ˈtaɪlænd ราชอาณาจักรไทย, râːtɕʰa-ʔaːnaːtɕɑ̀k-tʰɑj The Republic of Indonesia ( (Republik Indonesia is a Country in Southeast Asia. [10]

Advantage Card - billed as the most generous customer loyalty card in Britain, Boots Advantage card has 15,000,000 regular users[11] and users earn 4 points (worth 1p each, so 4p per £1) for every £1 spent. Loyalty programs are structured marketing efforts that reward and therefore encourage loyal buying behaviour — behaviour which is potentially of benefit to the firm (In Ireland, users earn 4¢ for every €1 spent).

Alliance Pharmacy

Alliance Pharmacies are typically smaller shops[12] 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. [7]

Moss Pharmacies

E. Moss Limited was acquired by UniChem in 1991 and through 2005 was re-branded as Alliance Pharmacy. Year 1991 ( MCMXCI) was a Common year starting on Tuesday (link will display full calendar of the Gregorian Calendar. 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. [11] In Norway the group operates the Alliance Apotek chain with 127 outlets. Alliance Apotek is a Pharmacy chain in Norway owned by Alliance Boots that operates 127 outlets throughout the country

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. Kangol is a clothing company famous for its Headwear. Founded in Cleator, Cumbria, England in 1938 by Jaques Spreiregen Kangol Toni & Guy is a UK and US-based Hairdressing company History Toni & Guy is an international hair care business founded in London United Kingdom in 1963 French Connection is a company founded in the United Kingdom in 1972 which sells clothing and accessories in many parts of the world Some are sold through Boots outlets whilst others are sold through third party stores such as French Connection. The French Connection was a scheme through which the drug Heroin was smuggled from Turkey to France and then to the United States, culminating Boots Manufacturing has plants in the UK, Germany, France and Poland. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. This article is about the country For a topic outline on this subject see List of basic France topics. Poland (Polska officially the Republic of Poland Boots Manufacturing also produces Boots, No 7 and Soltan products for sale through outlets in North America.

BCM Cosmétique is the companys manufacturing division in France. This article is about the country For a topic outline on this subject see List of basic France topics.

BCM Kosmetik is the companys manufacturing division in Germany. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe.

UniChem

UniChem 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. [11]

In addition to supplying Alliance Pharmacies, the Alliance UniChem 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. A hospital is an institution for Health care providing treatment by specialised staff and equipment and often but not always providing for

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. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. 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. [13]

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.

Financial performance

Boots Group PLC

Year ended Revenue (£m) Profit before tax (£m) Net profit (£m) Basic eps (p)
31 March 2006 * 5,027. Earnings per share (EPS are the earnings returned on the initial investment amount 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

[14]

Alliance UniChem Plc

Year ended Revenue (£m) Profit before tax (£m) Net profit (£m) Basic eps (p)
31 December 2005 9,171. Earnings per share (EPS are the earnings returned on the initial investment amount 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

[14]

See also

Notes

Note AAlliance Pharmacy stores will be re-branded to Boots stores. This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page may be out of date This article is about a former British company which has now merged to form Alliance Boots, as a result information on this page is likely to be out of date [7]

References

  1. ^ BBC News 3rd October 2005
  2. ^ Alliance Boots Board of Directors
  3. ^ Office of Fair Trading - Notification by Sainsbury's and Boots
  4. ^ BBC News 22nd October 2004
  5. ^ BBC News
  6. ^ a b Alliance Boots IR
  7. ^ a b c Digital Look Accessed 2nd November 2006
  8. ^ Boots The Chemists Website
  9. ^ Boots Opticians website information
  10. ^ Boots online country selection
  11. ^ a b c Alliance Boots corporate information
  12. ^ BBC News3rd October 2005
  13. ^ Almus Media Centre
  14. ^ a b Alliance Boots Results Archive

External links

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