The Wall Street Journal this week (December 11) revealed that Boots’s American parent company “is in talks to sell itself” to private equity firm Sycamore Partners “in a deal that would take the pharmacy chain off the public market”.
Sources said that a deal “could be completed early next year”, according to the news giant.
But it added that Sycamore would likely sell off pieces of the business or work with partners.
Read more: UPDATED: Boots parent company announces 1,200 US store closures
Sky News also this week (December 11) reported that Sycamore’s “$10bn-plus takeover bid…is set to trigger a fresh auction of Boots”.
The news outlet said it understood that the private equity firm “is expected to seek separate ownership for Boots if it succeeds in taking WBA…private”.
Read more: Boots reports modest growth as parent company cuts losses amid sale rumours
“Stefano Pessina, the Italian dealmaker who has led a string of major deals involving Boots over the last two decades, is expected to play a central role in any carve-out”, it added.
“One source said that Pessina, who holds roughly a 17% stake in WBA, may end up as the principal owner of Boots,” Sky reported.
However, all parties involved in the deal rumours have remained tight-lipped.
No comment
Boots, WBA and Sycamore all told C+D this week that they would make no comment on the reports.
Last November, the Times reported that “City sources” believed WBA could “restart the Boots sale process…within the next six months”.
It claimed that WBA was “determined to sell Boots” and that the pension scheme had previously been “a deterrent to the private equity firms” that were prospective buyers in 2022.
Read more: Boots warns Chancellor budget will cause ‘inevitable’ job losses
The new sale rumours come after WBA announced in 2022 that it had ultimately decided not to sell the UK pharmacy chain.
At the time, it cited “market instability” as the reason why no prospective buyers were able to make an offer “that adequately reflects the high potential value” of Boots.
Meanwhile, WBA announced plans for some 1,200 “future expected store closures” in the US in October.
Read more: Revealed: Boots planning up to 69 more store closures across UK
And the multinational’s June filing with the US securities and exchange commission (SEC) revealed “plans to reduce its presence by up to 650 Boots stores” as part of its “transformational cost management program (TCMP)”.
At the time, it appeared to downplay the chance that Boots could be sold in the short-term, saying that WBA was “committed to continuing to invest in Boots UK” and looking to “find innovative ways for this business to fulfil its potential”.
“While we believe there is significant interest in Boots at the right time, its growth, strategic strength and cashflow remain key contributors to the company,” its chief executive added.
In June last year, Boots announced that it would close “300 pharmacies across the country over the next year”.
