Boots is weighing a potential ownership change after its private equity backer began engaging strategic buyers months before a possible London listing. The discussions could lead the British pharmacy and beauty chain to abandon IPO plans that had been under consideration for as soon as 2027.
Highlights
- Boots is in advanced talks for a potential $10 billion sale to the Weston family and Sigma Healthcare, potentially abandoning its London IPO plans.
- Sycamore Partners, owner of Boots since its $10 billion acquisition of Walgreens Boots Alliance last year, began discussions with strategic buyers before Easter 2024.
- A change of ownership at Boots, which operates over 1,800 UK stores and provides National Health Service pharmacy services, could disrupt the broader UK retail pharmacy sector.
Sale talks gather pace
As first reported by the Reuters, Boots is in talks with the billionaire Weston family and Australia's Sigma Healthcare over a deal valued at about $10 billion, which could replace plans for a London stock market debut.Sycamore Partners, which took control of Boots last year through the $10 billion acquisition of parent Walgreens Boots Alliance, entered discussions with potential strategic buyers before Easter. The negotiations have advanced with the Canadian branch of the Weston family, which holds stakes in grocer Loblaws and pharmacy chain Shoppers Drug Mart through Wittington Investments.
In April, Reuters reported that Boots' owners were working with consultants on a strategy overhaul ahead of a potential London IPO as soon as 2027, while also keeping open the option of a sale.
Implications for the UK pharmacy market
Boots operates more than 1,800 stores across Britain, selling pharmacy and health products as well as beauty brands including Soap & Glory. The company is also a major provider of National Health Service-funded pharmacy services, making any ownership change significant for the broader UK retail pharmacy sector.Sycamore declined to comment on the report. Boots and Sigma Healthcare did not immediately respond to Reuters requests for comment, and Wittington Investments could not immediately be reached.
We previously reported on Boots’ potential $10bn sale, as Sycamore Partners explored a deal with strategic buyers including the Weston family and Sigma Healthcare, potentially sidelining a return to the London stock market. Our coverage also noted that the renewed buyer interest came as Boots reported stronger UK trading, with revenue rising to £7.5bn and pre-tax profit climbing to £337mn, strengthening the case for a sale over an IPO.
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