Saturday, December 04, 2021

2,200 branches: Owner of Boots plotting £10bn sale of 172-year old pharmacy chain

BY:MICHIEL WILLEMS
(Getty Images)

The parent company of Boots is reportedly considering putting the pharmacy chain on the market next year, according to news reports this morning.

US retail giant Walgreens Boots Alliance (WBA) is lining up advisers from Goldman Sachs to explore a potential sale of the pharmacy, Sky News wrote.

City A.M. understands that a potential valuation of the 172-year old firm would be around £10bn. Boots has more than 2,200 stores and employs 55,000 people.

In a statement, WBA said that while it does not comment on speculation, but it was “accurate” that the company had announced a “renewed set of priorities and strategic direction for its future”.

“Walgreens Boots Alliance (WBA) does not comment on market speculation and Boots is an important part of the Group.”

“However, it is accurate that WBA announced a renewed set of priorities and strategic direction for the Group in October, which includes a more pointed focus on North America and on healthcare.

“As underlined during the last WBA investor conference, the Group continues to be very pleased with the performance of Boots and the International division as a whole.

“In line with the Group’s long-term healthcare strategy, Boots UK continues to expand its healthcare offering,” the statement read.

“Furthermore, boots.com continues to grow above expectations having more than doubled sales when compared to pre-pandemic levels.”
Sales rebound

In an update in October, Boots reported a sales rebound after lockdown restrictions eased.

In the final quarter of its financial year to August 31, the company saw like-for-like sales increase by 12.8% to 34.3 billion US dollars (£25 billion) for the period.

WBA highlighted that it benefited from a strong operational performance from Boots, with growth for both its retail and pharmacy arms.

Boots managing director Sebastian James said sales through its online business had doubled against pre-pandemic levels, with the firm maintaining this growth despite returning high street footfall.

Walgreens Boots Alliance was formed in 2014 after Walgreens bought the 55% stake in UK and Switzerland-based Alliance Boots that it did not already own.

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