Terra Firma Plans Potential Counterbid for Alliance Boots

THE WHAT? Private equity firm Terra Firma aims to challenge the 10-billion-pound bid for Alliance Boots, Britain’s largest pharmacy chain known for selling medicines and beauty products. This move follows the company’s decision to open its books to an existing offer from Kohlberg Kravis Roberts (KKR) and Deputy Chairman Stefano Pessina.

THE DETAILS 

• New Bid Inquiry: Terra Firma, in partnership with the Wellcome Trust, has asked for the same access to Alliance Boots’ financial data granted to KKR and Pessina.
• Current Offer: KKR and Pessina’s existing bid is priced at 1,040 pence per share, an increase from their initial 1,000 pence.
• Company History: Alliance Boots was formed through the merger of health and beauty retailer Boots and drug wholesaler Alliance Unichem. It operates pharmacies and distributes personal care items and cosmetics.
• Board Response: Alliance Boots’ board will grant access to Terra Firma if it demonstrates sufficient funding for a credible counterproposal.

THE WHY? Multiple parties have shown interest in acquiring Alliance Boots because of its established retail presence in pharmacy and personal care. The potential counterbid reflects ongoing competition among private equity investors for large-scale health and beauty businesses.

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