26th July 2010: British Retailer, Alliance Boots, a pharmacy and beauty retail chain will prepare for a major push into Africa and the Middle East with the purchase of one of Turkey’s biggest drug wholesalers. Alliance Boots will take full control of Hedef Alliance in a deal thought to value the Turkish company at more than £600m. (To read Singapore Franchise News)

Boots already owns a 50 per cent stake in the business following two separate investments in the last decade. Alliance Boots executive chairman Stefano Pessina told the Financial Times the deal is the most significant since he and private equity vehicle Kohlberg Kravis Roberts spent £11.1bn taking the firm private. Pessina says the move represents a shift in focus to the distribution side of the business, which will be fuelled by a number of upcoming acquisitions. (To read Indian Franchise News)

Hedef has the added advantage of owning a 50 per cent stake in Egypt’s biggest drug wholesaler and interests in Algeria, making it perfectly placed for Alliance Boots’ push into the continent. Charismatic Italian Pessina has transformed the firm since he led the buy-out, merging parts of the business with outside firms and investing heavily in its flagship Boots brand in the UK.

Earlier this year Alliance Boots became only the third UK retailer to post profits of more than £1bn, a 13 per cent hike year-on-year. Tesco and Marks & Spencer are the only other British retailers to have produced annual profits over the £1bn mark. (To know more about other Retail Franchise Opportunities)

Alliance Boots’ revenue for the year to 31 March rose 9.6 per cent to £22.5bn, including a 10.3 per cent increase at its wholesale arm and a 5.2 per cent rise at its health and beauty division. Net debt fell £645m to £8.39bn.

The Master Franchisee for Alliance Boots in Middle East is the Al-Shaya Group, headed by Mohammed Al Shaya. The Alliance Boots is the largest pharmacy chain in the Middle East