Under the terms of the agreement, Fareva will take ownership of BCM, Walgreens Boots Alliance’s contract manufacturing business in the personal care sector. Simultaneously, Walgreens Boots Alliance and Fareva have agreed on a 10-year global partnership for the manufacture and supply of Walgreens Boots Alliance own beauty brands and private label products, including products for sale in the USA.
BCM, the contract manufacturing business of Walgreens Boots Alliance, is one of the largest health and beauty contract manufacturers in Western Europe. The company operates factories in Nottingham in the UK, Vitré in France and Frankfurt in Germany.
For its part, Fareva is a leading global subcontractor for the beauty and health markets. The group manufactures in 11 countries, including the USA, and has significant research and development capabilities.
“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,” explains Walgreens Boots Alliance in a release.
With the sale of its beauty manufacturing wing, Walgreens Boots Alliance intends to focus on in its international retail development (Walgreens, Duane Reade, Boots and Alliance Healthcare) and the marketing of its own beauty brands (No7, Botanics, Liz Earle and Soap & Glory).
The proposed agreement, which is subject to Works Council consultation and regulatory approval, is expected to be completed by the end of calendar year 2017.