Walgreens Drops Plans to Shed Boots, No7 Beauty After Bids Fall Short

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 [e-mail]

(END) Dow Jones Newswires

June 28, 2022 08:37 ET (12:37 GMT)

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