Boots to shed Halfords at £450m

BOOTS is to sell or demerge its car parts and cycles retailer Halfords in a move that is expected to value the chain at up to £450m. The decision ends months of speculation about the future of business, which has long been considered an ill-fitting match with Boots' other subsidiaries.

Separation from Halfords will also draw a line under the ill-fated £900m acquisition of retail conglomerate Ward White in 1989. The group, which included DIY chains Payless and Fads, cost Boots more than £500m in goodwill write-offs and other losses. Most of the businesses were sold in the late 1990s but Halfords was retained.

Boots believes a demerger of the chain will realise most value for shareholders but is open to offers from trade or venture capital buyers.

The group intends to complete the process one way or another by the autumn and is being advised by Deutsche Bank.

Halfords made £37m on turnover of £509m in the year to 31 March and profits of more than £50m are expected in the current year. The business has 400 stores and its managing director Rod Scribbins is to become the new chief executive.