Alliance Boots has launched a strategy of consolidation, putting any profits back into the pharmacy chain. According to the Financial Times, Alliance Boots’ executive chairman Stefano Pessina does not intend to take any cash out for two years or more.
“There is no intention to pay a dividend. Our intention is to invest all the cash we are able to generate back into the business,” said Pessina, who took the company private last June.
In the next three years Alliance Boots will use up to £1bn on capital expenditure. It also plans to roll out Boots-brand products across Europe.