Mothercare and Boots13 Dec 2019 15:49
UK Regulatory (RNS & others)
TIDMMTC
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN EU
REGULATION NO 596/2014 AND IS MADE IN ACCORDANCE WITH THE COMPANY'S
OBLIGATIONS UNDER ARTICLE 17 OF THAT REGULATION
Mothercare plc
New UK franchise partner
Mothercare Global Brand Limited ("Mothercare" or the "Company"), the
global specialist brand for parents and young children, today announces
that it has entered into binding heads of terms with Boots UK ("Boots")
for Boots to become our new exclusive franchisee of the Mothercare brand
for the UK. Boots is the UK's largest pharmacy-led health and beauty
retailer, and is part of the Retail Pharmacy International Division of
Walgreens Boots Alliance, Inc. the first global pharmacy-led, health and
wellbeing enterprise.
This new partnership will provide the strong foundations for
Mothercare's continuing presence in the UK. There is good synergy
between the UK customer proposition and the customer bases of Boots and
Mothercare and this new partnership is expected to create significant
opportunities for both companies.
Mothercare products in Boots stores and online
Under the terms agreed between the parties, Boots will stock
Mothercare-branded clothing, and home and travel products; this latter
category includes pushchairs and car seats. The Mothercare product range
will be made available in larger Boots stores across the UK including a
number of Mothercare shop in shops over time, as well as online at
www.boots.com. A limited range of Mothercare product will be available
to buy online from mid 2020. It is expected that a wider Mothercare
product offer will be available in Boots stores from late summer 2020.
Further details of the franchise partnership arrangements
Having today entered into binding heads of terms with Boots, the Company
will now push on with the finalisation of the detailed contractual
arrangements with Boots which are expected to be signed in the next
quarter. The proposed franchisee partnership will be for an initial
period of 5 years and the terms and royalty rates arrangements will
broadly be commensurate with those of the Company's existing franchisee
agreements.
Mark Newton-Jones, CEO of Mothercare commented:
"I am delighted to announce that we have taken our long-standing
partnership with Boots to this next stage. In Boots, another much loved
British heritage brand, we believe that Mothercare has found the right
home in the UK. Boots is at the heart of one of the largest healthcare
businesses in the world, and Mothercare will fit in as the specialist
brand for parents and young children in both Boots stores and online.
We know the team at Boots well from our successful Mini Club partnership
which has been established over many years, and we now look forward to
working in an even stronger collaboration
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