A $10 billion-plus takeover bid for one of America’s largest drugstore chains is set to trigger a new Boots the Chemist auction after a series of failed attempts to sell the British retail giant detail.
Sky News understands that Sycamore Partners, the private equity firm, is expected to seek separate ownership for Boots if it succeeds in taking Walgreens Boots Alliance (WBA), its current New York-listed parent company, private.
The Wall Street Journal reported Tuesday that Sycamore Partners was in talks to buy WBA, whose market value has fallen to less than $8 billion in recent months.
Stefano Pessina, the Italian dealmaker who has led a series of major deals involving Boots over the past two decades, is expected to play a central role in any split from the Nottingham-based retailer.
One source said Mr Pessina, who owns about 17% of WBA, could become the main owner of Boots depending on how the deal with Sycamore was structured.
WBA orchestrated and terminated at least two processes to explore a sale of Boots in recent years, deciding that offers from parties including Apollo Global Management did not provide sufficient value.
Boots, which celebrates its 175th anniversary this year, employs around 52,000 people and operates from around 1,900 stores.
It recently appointed a new boss after Seb James, its long-serving chief executive, resigned for a new role in the healthcare sector.
Boots’ heritage dates back to John Boot’s opening of a herbal store in Nottingham in 1849.
It opened its 1,000th store in the United Kingdom in 1933.
In 2012, Walgreens acquired a 45% stake in Alliance Boots, completing its purchase of the company two years later.
Spokespeople for Sycamore, Mr. Pessina and Boots all declined to comment.