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Item Details
The Private Equity Buyout of Alliance Boots (with Teaching Notes)
Publication Date:
August 01,2007
Type:
Case Study
Author(s):
Stonham, P.
Length:
11 p
Description:
In June 2007 the largest private equity bid in the UK and the first to target an FTSE 100 listed company was completed. Alliance Boots, the pharmacy, healthcare and beauty retailer and wholesaler was bought out by AB Acquisitions, an investment vehicle owned by Kohlberg Kravis Roberts and Stefano Pessina. At the peak of the private equity boom, the bidding was competitive and the final price paid high. Several innovative features were contained in the terms of the buyout and in the financing of the deal. Although judged a successful outcome for AB Acquisitions, the later aspects of the deal – particularly the syndicating of bank debt – raised some problems. Concerns general to the private equity industry were also expressed over the Alliance Boots buyout – pensions, employment, taxation and leverage, and these are discussed in this Case Study. Teaching Notes are attached.
Topics Covered:
Alliance Boots, Kohlber Kravis Roberts, Stefano Pessina, Private Equity Buyout, Leverage
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