Boots to demerge Halfords stores

12 April 2012

HEALTH and beauty chain Boots is to demerge its garage business Halfords, it was announced today. Speculation had been growing in the City for some time that Nottingham-based Boots would spin off the car parts and bicycles chain, which it has always said was not a core part of the group. Today, however, is the first time Boots has said it will demerge the business.

The group is considering selling Halfords, which is based in Redditch near Birmingham, but added that the most appropriate method was likely to be a demerger to shareholders.

Under the proposed deal, Boots' shareholders would receive shares in Halfords which would become an independent company listed on the London Stock Exchange.

Boots chief executive Steve Russell said: 'Our focus is on growing our health and beauty business. Halfords is an excellent company with a strong management team and a good record of profit growth. I am confident it will thrive as an independent company.'

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