Pharmacy-led health and beauty group Alliance Boots has signed an agreement to acquire Farmacias Ahumada (“FASA”).
The group, which operates over 3,100 stores, will buy Mexican pharmacy chain Farmacias Benavides and Chilean chain Farmacias Ahumada. The two businesses generate £835 annually.
The deal, subject to regulatory approvals, is expected to be completed in the third quarter of 2014.
Stefano Pessina, Executive Chairman, Alliance Boots, commented: “This acquisition will give Alliance Boots a major presence in the attractive Latin American market, one of our priority areas for investment. It is also a further step towards reaching a truly global footprint. The well-positioned retail pharmacy businesses of Farmacias Ahumada and Farmacias Benavides will be great additions to our Group’s unique portfolio of retail, product and service brands around the world.
“We are confident in the high potential for sustainable growth and value generation that will be unlocked by this acquisition, including the opportunity for consumers in Mexico and Chile to access for the first time leading Boots product brands, such as our renowned skincare and cosmetics ranges.”
Revenue at Alliance Boots for 2012/13 fell 2.6 per cent to £22.4bn while profit after tax rose 12.7 per cent to £805m.