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Halfords UK for Sale for € 825 million

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LONDON, UK (April 18) – British cycle and car accessories chain Halfords is to be demerged by its parent company Boots plc. The beauty and health specialist determined, that Halfords no longer is part of its core business. As Boots CEO Steve Russell puts it: “Halfords is an excellent company with a strong management team […]

LONDON, UK (April 18) – British cycle and car accessories chain Halfords is to be demerged by its parent company Boots plc. The beauty and health specialist determined, that Halfords no longer is part of its core business. As Boots CEO Steve Russell puts it: “Halfords is an excellent company with a strong management team and a good record of profit growth.”
In its last fiscal year, which ended by March 31, 2001, Halfords reported a £ 42 million ( € 61 million) profit on £ 509 million (€ 840 million) revenues. For annual figures ending by March 31, 2002, Halfords, forecasts a £ 50 million (€ 80 million) profit. The chain operates 400 stores UK-wide among which are 330 superstores, 58 city stores under the Arcade brand and 12 motorway stores. Last summer the garage servicing division was sold to the British AA (Automobilists Association) . Analists welcomed the long expected strategic move by Boots. It appeared, that Halfords has been up for sale since almost 2 years now. But no serious bidder has shown up yet. According to analists venture capitalists would be reluctant to invest some £ 500 million (€ 825 million) in the cycle and auto chain. New CEO of coming independent Halfords will be Rod Scribbins, the current managing director of Halfords UK. By May 31, Boots will present more details on the demerger following its annual results 2001/2002. “I am confident, that it will thrive as an independent company”, concludes Boots CEO Russell. (FN)

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