New York-based private equity firm Sycamore Partners is set to acquire Walgreens Boots Alliance (WBA) in an £8 billion deal, potentially leading to a breakup of the company.
Sycamore and Walgreens are close to finalising the transaction, with an official announcement expected this week, according to Bloomberg.
Following the takeover, Boots is likely to be spun off as a separate company, as sources familiar with the matter have told the publication that it’s “one of the options being discussed.”
The report also cited analysts who suggested that Walgreens’ diverse business portfolio complicates take-private transactions and would likely require a breakup as part of any deal.
This has sparked concerns about the future of Boots on UK high streets, particularly as the company has already undertaken significant store closures as part of a cost-cutting strategy.
Boots, which merged with Walgreens in 2014, has been reshaping its UK store network, closing 300 stores by the end of 2024—part of a broader plan announced in June 2023 to shut 650 locations.
These closures have reduced its presence from 2,200 shops to approximately 1,800 stores nationwide.
Despite this downsizing, Boots remains a dominant force in the UK retail sector.
The health and beauty retailer reported strong financial performance for the first quarter ending November 30, 2024, with total retail sales rising 8.1% year-on-year, seeing growth across all categories.
Pharmacy sales increased by 10.9% compared with the year-ago quarter, while Boots.com sales surged 23% on a constant currency basis, accounting for 22% of total retail sales .
The parent company, Walgreens Boots Alliance, also reported sales growth across all business segments, with total sales for the quarter reaching $39.5 billion (approximately £32.39 billion), marking a 7.5 per cent increase from the year-ago quarter.
Commenting on the 2025 first quarter financial results, Tim Wentworth, CEO of Walgreens Boots Alliance, said: "Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models.”
“While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model."
Sycamore and Walgreens have yet to make an official announcement regarding the reported deal.
