Alliance Boots’ backers have vowed not to take any cash out of the business for at least two years as they plough profits back into the retail and wholesale company’s growth plans.

Stefano Pessina, executive chairman of Alliance Boots, which he took private with KKR in an£11.1 billion buy-out last June, told the Financial Times: “There is no intention to pay a dividend. Our intention is to invest all the cash we are able to generate – which is quite substantial after we have paid the interest back – back into the business.”

Pessina said Alliance Boots would use up to£1 billion on capital expenditure in the next three years. It is opening further pharmacies and plans to roll out Boots-branded products, such as Soltan suncare, across Europe. Alliance Boots is also eyeing Latin America and India as potential growth markets.

Pessina added: “We have bought a business that is underinvested and the first thing we have to do as responsible shareholders and managers is to make sure the business is competitive.”

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