Boots, the UK pharmacy and retail chain, is in negotiations that could lead to a sale valued at about $10 billion, according to a report citing people familiar with the matter. The discussions involve the Weston family and Sigma Healthcare, the Australian pharmacy group, and may remove a London initial public offering from consideration.
Private equity firm Sycamore Partners, which purchased the parent company Walgreens Boots Alliance last year in a transaction valued at $10 billion and took control of Boots, began holding conversations with potential strategic buyers before Easter, the report said.
Those discussions have reportedly moved forward with the Canadian branch of the Weston family. That branch holds investments in retail and pharmacy businesses through Wittington Investments, including stakes in grocery chain Loblaws and pharmacy chain Shoppers Drug Mart.
In April, another news report said Boots’ owners were working with advisers on a strategic review that included preparing for a possible London initial public offering as early as 2027. That same review also kept the option of a sale on the table, leaving both routes under consideration for the company’s owners.
Boots operates more than 1,800 stores across Britain and offers a combination of pharmacy services, health products and beauty brands, among them Soap & Glory. The retailer is a significant provider of pharmacy services funded by the National Health Service.
The discussions over a prospective sale and the parallel strategy review mean the company’s path - whether toward a public listing in London or a private sale - remains unsettled. The outcome could determine ownership and strategic direction, although no definitive deal has been announced in the reporting referenced.
Context and next steps
According to the reports, Sycamore Partners initiated outreach to prospective strategic buyers before Easter and has since engaged the Weston family’s Canadian arm. The strategic review conducted by Boots’ owners continued to weigh an IPO timetable alongside the sale option, indicating owners have been examining both private and public exits.