Walgreens Boots Alliance set for long-term global supply agreement

Walgreens Boots Alliance, which was formed in a 2014 merger between Walgreens and Alliance Boots, has announced a binding offer from Fareva for a 10-year global agreement for the manufacture of own beauty brands and private label products.

Terms of the offer ​

Under the terms of the offer, Fareva will take ownership of BCM, Walgreens Boots Alliance’s contract manufacturing business, which operates factories in the UK, France and Germany. The agreement includes products for sale in the USA.

“The proposed agreement will create a partnership to provide Walgreens Boots Alliance with a core multinational manufacturing and development resource, enabling the company to accelerate its global product strategy​,” says Walgreens Boots Alliance.

Fareva manufactures in 11 countries, including the USA, and has significant research and development capabilities.

The proposed agreement, which is subject to Works Council consultation and regulatory approval, is expected to be completed by the end of this year.

Walgreens Boots Alliance: profile​

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the USA and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25 countries.

The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands such as No7, Botanics, Liz Earle and Soap & Glory.

The company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has over 13,200 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, it says.