Pension deal breaks Boots sale deadlock

The guardians of Alliance Boots’ pension scheme struck a funding deal with the group’s private equity buyers today, breaking the deadlock that threatened the £11.1bn (€16.4bn) sale of the healthcare giant.

Boots’ new owners, Kohlberg Kravis Roberts and Boots deputy chairman Stefano Pessina, have agreed to pay £418m (€619m) in instalments over 10 years to plug the retail and pharmaceutical group’s pension hole.

KKR and Mr Pessina will also set aside a £600m (€889m) “security package” to protect the pensions of Boots’ 66,000 scheme members.