The merger of Alliance UniChem and Boots was completed on 31 July 2006. The historic information below is an extract taken from the Merger Prospectus issued to shareholders on 5 June 2006.
The merger of equals between Boots and Alliance UniChem will create an international pharmacy-led health and beauty group. The merger is expected to build on the existing strategies of the Boots Group and the Alliance UniChem Group and combine their complementary skills and businesses to:
- capitalise on growth in demand for healthcare and beauty products, which is expected to offer significant opportunities for the enlarged group;
- create Europe’s leading retail pharmacy business by revenue comprising approximately 3,000 retail outlets, including approximately 2,600 in the UK, with a wholesale and distribution network serving approximately 125,000 outlets;
- enhance international growth opportunities in new markets by utilising the enlarged group’s acquisition skills, management expertise, internationally-recognised brands, strong balance sheet and pipeline of existing acquisition opportunities in new geographical markets; and
- deliver annual pre-tax cost savings of at least £100 million1 per annum by the fourth full year2 following completion by streamlining the enlarged group’s purchasing, logistics and wholesale network and rationalising corporate costs.
Alliance Boots also expects incremental revenue benefits from the increased availability of its leading brands, own label products and the Boots Advantage Card across the larger network. In addition, the Company is expected to benefit from the application of retail pharmacy and wholesale skills across the broader enlarged group.
1 - These statements of estimated cost savings and the one-off costs of achieving them relate to future actions and
circumstances which, by their nature, involve risks, uncertainties and other factors. Because of this, the cost savings
referred to may not be achieved, or those achieved could be materially different from those estimated.
2 - Being the 12 month period ending on the fourth anniversary of Completion.