KKR Private Equity Investors, L.P. has committed to a GBP 150 million (approximately USD 300 million) co-investment in the acquisition of Alliance Boots plc.
KKR Private Equity Investors, L.P. has committed to a GBP 150 million (approximately USD 300 million) co-investment in the acquisition of Alliance Boots plc. This co-investment would be in addition to approximately GBP 75 million (approximately USD 150 million) of capital contributions that KPE expects to fund as a limited partner in certain private equity funds of Kohlberg Kravis Roberts & Co (KKR).
Alliance Boots, Europe’s leading pharmacy-led health and beauty group, recently agreed to be acquired by AB Acquisitions Limited, a company jointly controlled by certain funds advised by KKR and Alliance Sante Participations S.A., an entity indirectly owned by Stefano Pessina, pursuant to scheme of arrangement under the UK Companies Act. The scheme circular was mailed to shareholders on May 8, 2007.
Approximately GBP 30 million (approximately USD 60 million) of KPE’s investment has been funded already as a portion of the equity necessary in connection with purchases of Alliance Boots shares by AB Acquisitions, as described in the scheme circular. The remainder of KPE’s investment will be used to fund a portion of the equity necessary to complete the acquisition of Alliance Boots. This announcement does not reflect any change in the terms of the acquisition.
Whether the acquisition of Alliance Boots pursuant to the scheme of arrangement and, accordingly, KPE’s remaining investment will be consummated depends on the satisfaction or waiver of a number of conditions described in the scheme circular, some or all of which may not be in the control of KPE, KKR PEI Investments, L.P. (its subsidiaries) or KKR. No assurances can be made as to whether or when, the actual amount at which, this remaining investment will be consummated.
KPE stated it has ‘made its commitment, has made its initial investment, and, subject to the foregoing, will make its remaining investment through a wholly-owned subsidiary of KKR PEI Investments, LP, the investment partnership through which KPE makes its investments.’
KKR Private Equity Investors, LP (KPE) is a Guernsey limited partnership that seeks to create long-term value by participating in private equity and opportunistic investments identified by Kohlberg Kravis Roberts & Co. (KKR). Formed in April 2006, KPE enables certain public market investors to invest in KKR-identified investments. KPE will invest at least 75% of its assets in KKR’s private equity investments, while up to 25% of its assets may be invested opportunistically in other investments identified by KKR. KPE makes
its investments through another Guernsey limited partnership, KKR PEI Investments, LP, as its sole limited partner.
