Morning:
8°c
Mothercare and Alliance Boots today said they have agreed to design, source and supply a new children's clothing and accessories brand to be sold in Boots stores in the UK and Ireland.
The agreement builds on an existing deal where Boots sells Mothercare's Early Learning Centre toys in over 400 stores.
Ben Gordon, chief executive of Mothercare, said the latest agreement represented a “substantial development” in the firm's recently announced strategy to target wholesale business.
Boots said the deal would further strengthen its baby and child range. The chemist giant has said for some time that it is keen to pursue more strategic partnerships to expand its business.
Shares in Mothercare opened this morning at 642 pence, valuing the company at £566 million.
Alliance Boots is owned by Executive Chairman Stefano Pessina and private equity firm Kohlberg Kravis Roberts.
