Walgreens Boots Alliance has reportedly shelved plans for a potential initial public offering (IPO) of Boots, the UK health and beauty chain, amidst ongoing sales negotiations. According to Bloomberg, the US-based parent company is now exploring alternative options for Boots, which has dashed previous hopes for an IPO listing on the London Stock Exchange.
In recent weeks, Walgreens Boots Alliance has allegedly engaged in informal discussions with several potential buyers, including private equity firms, for the UK beauty chain. These rumors of a potential sale resurfaced last month, with the company eyeing an estimated £7 billion deal for Boots. Despite these talks, sources familiar with the situation indicated that no final decision regarding the future ownership of Boots has been made.
This marks the second time Walgreens Boots Alliance has attempted to sell Boots, following an initial effort in 2022. The previous sale attempt was abandoned due to the failure to find a suitable buyer amid “unexpected and dramatic” changes in market conditions.
Last year, in a strategic move to make the chain more appealing to potential buyers, Boots sold its pension scheme to the investment firm Legal & General. Additionally, in June 2023, Boots announced plans to close 300 stores over the course of a year as part of a transformation strategy aimed at rejuvenating the business.
Meanwhile, Walgreens Boots Alliance’s Executive Chair has faced significant financial setbacks, with an estimated US$2.2 billion loss in his fortune following a sharp decline in the market value of his company holdings.
According to the latest financial results released by Walgreens Boots Alliance, the company’s second quarter sales amounted to $37.1 billion , a 6.3% increase from the same period last year.
