Alliance Boots increases stake in Hedef

Published: 26-Jul-2010

Retail group continues to invest in North Africa


Alliance Boots has become the majority shareholder in Turkey’s largest pharmaceutical wholesaler Hedef Alliance. The retail giant has grown its stake from 50% to 60% and has promised to further augment its ownership of Hedef in stages over the next two years.

Hedef currently operates over 130 distribution centres and boasts consolidated revenue of around £2.4bn. In addition to Turkey, the deal will enable Alliance Boots to break into regions including Egypt – where Hedef has a controlling stake of United Company of Pharmacists – and Algeria, on the back of Hedef’s associate interest in Hydrapharm.

Alliance Boots first invested in Hedef, which was founded by Ethem Sancak in 1987, in 2001 with an initial 25% investment, increased to 50% in 2002.

Executive chairman Stefano Pessina described the move as Alliance Boots’ biggest deal since the company’s creation, adding: “We are delighted with this acquisition in line with our strategy of investing internationally in strong companies in large and growing markets.”

Sancak will continue to act as Hedef’s executive chairman with an increased personal stake.

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