Walgreens Boots Alliance’s Earnings Slide on Opioid Deal, But Beat Analysts’ Expectations

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Earlier this week, the company shelves plans to offload Boots.

and its No7 beauty brand after no third party was able to make an offer that “adequately reflects the high potential value” of the business amid the macroeconomic environment and mounting speculation that the U.S. will fall into a recession.

“We gained early high interest at the very beginning of these discussions back in January. We started off with roughly about 8 to 10 interested parties in the Boots business. And we had very productive discussions, got into a detailed due diligence just as the market began to turn on us, and such an unexpected and dramatic change,” chief executive officer Rosalind Brewer explained in phone call with analysts. “So as a result, we made this decision to slow this opportunity down.

It had been widely reported that India’s Reliance Industries and U.S. private equity investor Apollo Global Management made a joint offer for Boots, which operates more than 2,200 stores, valuing it at between $5 billion and $6 billion. Of its future plans for the British drugstore, Sebastian James, managing director of Boots U.K. and ROI, said: “The execution of our transformation program and a sharp focus on expanding our key categories of health care and beauty, has driven strong sales and market share growth and further strengthened our position as the U.K.’s leading health and beauty retailer. Significant investment in both our digital platforms and in our stores is expected to drive continued market leading growth.

 

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