Walgreens Boots Alliance (WBA), the owner of Boots, is reportedly in discussions to sell the British retailer to private equity firm Sycamore Partners.
The proposed deal, as reported by The Wall Street Journal, could value Boots at approximately US$10bn.
Sycamore Partners, known for its focus on retail and consumer investments, is said to be exploring a takeover of Boots as WBA seeks to recalibrate its portfolio.
Boots, which is celebrating its 175th anniversary this year, operates around 1,900 stores across the UK and employs roughly 52,000 people.
Despite WBA’s challenges in the US, Boots has maintained strong performance, with recent reports highlighting its “positive momentum” as a standout in the company’s latest financial results.
Stefano Pessina, WBA’s Executive Chairman, is expected to play a pivotal role in the potential transaction.
Pessina, who holds a 17% stake in WBA, could emerge as the principal owner of Boots depending on the structure of the deal.
This is not WBA’s first attempt to sell Boots.
In 2022, the company explored a sale but abandoned the process, citing “unexpected and dramatic” shifts in market conditions.
Previous offers, including those from Apollo Global Management, were seen to be inadequate by WBA.
The latest talks come amid challenges for WBA, whose market value has fallen to less than £8bn in recent months.
In June, the company announced plans to close up to 700 underperforming stores in the US following a decline in its share price to the lowest levels since 1997.
The discussions with Sycamore Partners coincide with recent leadership changes at Boots.
Last month, Anthony Hemmerdinger, former Chief Operating Officer of Asda, succeeded long-serving Managing Director Seb James, who departed for a role in the healthcare industry.
Boots has been contacted for comment.