Walgreens Boots Alliance announced today that it has made a 10-year deal with Fareva to take over its manufacturing business.
Fareva is a French manufacturer operating in 11 countries. According to Fareva, it is one of the world’s leading subcontractors in the industrial and household, cosmetics, and pharmaceuticals fields, with more than 1,000 customers and a €1.3 billion ($1.5 billion) turnover in 2016.
Walgreens Boots Alliance hired Fareva to take ownership of BCM, its contract manufacturing business, which operates factories in the United Kingdom, France, and Germany. Fareva will manufacture the chain’s beauty brands and private label products, which includes products for sale in the United States.
According to a statement from Walgreens Boots Alliance, the “proposed agreement will create a partnership to provide Walgreens Boots Alliance with a core multinational manufacturing and development resource, enabling the company to accelerate its global product strategy.”
The deal is subject to European Works Council consultation and regulatory approval, but is expected to be completed by the end of 2017. Walgreens Boots Alliance recently ran into regulatory problems after its proposed merger with Rite Aid was delayed and then finally scrapped last month.