KKR promises: no job cuts or closures for Boots

KKR partner Dominic Murphy has played down fears that the private equity firm's takeover of health and beauty giant Alliance Boots would lead to job cuts and store closures.

Concerns have been raised after KKR sealed the deal by buying 10 per cent of the company shares and raising its offer to£11.39 a share, ploughing an extra£500 million into the deal.

The GMB union has called for the Secretary of State for Health and ministers for the NHS in Scotland and Wales to make KKR explain how the numbers will add up without the closure of hundreds of pharmacies in the UK. The union said: 'The NHS is a huge customer of Boots, so politicians - on behalf of the public - cannot shirk their responsibility of asking for assurances that the takeover will not harm the NHS.'

In addition, there are concerns over the Boots pension fund. KKR has given no details regarding the contributions they will make to protect the retailer's 70,000 members against the increased credit risk of a private equity employer. GMB union spokesman Paul Maloney claimed: 'KKR will try to close the Boots final-salary scheme.'

However, a KKR and Pessina spokesman said they were 'determined to do their best by all stakeholders'.

Alliance Boots will be the first FTSE100 company to be taken over by private equity after KKR won the bidding war with an£11.1 billion approach, outstripping rival Terra Firma, led by Guy Hands and backed by medical charity Wellcome Trust.