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Walgreens Boots Alliance, the American owner of Boots UK, could risk losing billions after a private equity firm interested in buying its UK high street pharmacy chain valued the retailer at a steep discount, The Telegraph reported on Monday (April 11). "Buyout funds CVC and Bain indicated that they were willing to pay just £4bn for the business," the newspaper said, adding that "the consortium bowed out of the running" in March. The US retail giant Walgreens, which acquired Boots in 2014 for £9bn, has put a £7bn price tag on the UK pharmacy retail chain after selling its wholesale arm, Alliance Healthcare, last year. Citing city sources, the newspaper said the low valuation of the pharmacy multiple was "significant" because CVC's UK operations were led by Dominic Murphy, a Walgreens board member involved with Boots for 15 years. "He (Murphy) knows where the bodies are buried," the newspaper quoted one City source as stating. A spokesperson for Boots confirmed that CVC and Bain never lodged a formal offer for the company.

Walgreens Boots Alliance on Tuesday (June 28) scrapped the plan to sell its UK high street pharmacy chain saying no third party was able to make an adequate offer due to the turmoil in global financial markets. Walgreens' move to call off the sale comes as private equity bidders Apollo Global and TDR faced headwinds in raising financing for the deal, as banks were wary of underwriting large chunks of the financing due to tough market conditions. Boots was initially valued at as much as £8bn with the auction process being led by Goldman Sachs. Global economic uncertainty and rising inflation have triggered a spike in interest rates as central banks have rushed to take action in the most widespread tightening of monetary policy for more than two decades, making deal financing costlier and harder to access. Walgreens had put its Boots UK business up for sale after announcing a strategic review in January as the second-largest US pharmacy chain renewed its focus on domestic healthcare. The company said the decision to retain Boots and No7 Beauty Company was also underpinned by their ongoing strong performance.

The parent company of Boots, Britain's largest pharmacy-led health and beauty chain, is reportedly considering putting its UK pharmacies up for sale next year for an estimated £10 billion. Walgreen Boots Alliance (WBA), the US health group that owns a stake in Boots UK since 2012, is lining up Goldman Sachs to explore a potential sale next year, as reported by Sky News. When contacted by Pharmacy Business, WBA said that it would not comment on "market speculation", noting that "Boots is an important part of the Group." The company, however, acknowledged that "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."

Boots registered a twelfth consecutive quarter of retail market share growth, with a reported retail sales increase of 5.9 per cent for the three months ending on 29 February 2024. This impressive growth comes on top of a 16 per cent increase recorded during the same period in the previous year, the UK's leading health and beauty retailer revealed. Strong growth was observed across digital platforms, namely Boots.com and the Boots app, with a 16.8 per cent surge in digital sales, particularly driven by "strong sales of beauty and personal care products." The growth of in-store sales remained consistent, registering a 4.5 per cent increase, with flagship, shopping center, and travel stores demonstrating particularly strong performance.

Despite significant sales growth in the quarterly results, high street chemist Boots is moving forward with its plan to close 300 stores in the UK. The move, aimed at improving profit margins amid rising costs and competition, will reduce the chain's portfolio from around 2,200 to just 1,900. Last month, the U.S.-based Walgreens Boots Alliance, the parent company of Boots, announced upcoming store closures within the next year. However, the company assured that there will be no job losses as all employees will be given the opportunity to be redeployed to nearby shops. The following sites are confirmed for closure on the specified dates: Heathside Rd, Woking (end of July) UEA campus (end of July) Hamlet Ct Rd, Westcliff-on-Sea (August 1) Windhill Road, Wakefield (October 6) Upper Warrengate, Wakefield (October 7) Glastonbury (October 13) Guildford Road, Woking (end of October) Boots stores at Salford Shopping Centre in Greater Manchester, Church Street in Malvern, The Port Arcades Shopping Centre in Ellesmere, and King William Street in London have already closed since spring.

Usdaw, one of the major trade unions in the UK, has sought assurances for its members working in Boots, following reports that the parent company of the iconic health and beauty retailer and pharmacy chain is considering putting the business on sale next year. Walgreen Boots Alliance (WBA), the US health group that owns a stake in Boots UK since 2012, is reportedly lining up Goldman Sachs to explore the sale of business with potential valuation of £10 billion. Currently, the process is thought to be solely exploratory and may not necessarily convert into the sale of the 172-year-old firm. Usdaw national officer, Daniel Adams, said: "We note that the company declined to comment on speculation, but acknowledged that the group's strategic direction 'includes a more pointed focus on North America and on healthcare'.

Walgreens Boots Alliance, Boots UK's parent company, has appointed Tim Wentforth as its new CEO, effective on 23 October. He joined WBA at a pivotal time when the company plans to downsize the business while driving execution and creating greater value for employees, patients, customers and shareholders. Wentforth replaced Rosalind Brewer, who stepped down on 1 September, after two years at the helm. He joined from Evernorth, Cigna's health services organisation based in Connecticut, where he served as its founding CEO. Prior to Cigna, he also held top roles in companies including specialty pharmacy company Accredo and pharmacy benefit manager Express Scripts.

WBA, Boots parent company revealed the results for its fourth quarter of the financial year, showing three months to August 2023. The reports published on 12 October show the loss of at least $1bn following a net loss of $3.1bn on an annual basis. This marks a decrease compared to a profit of $4.3bn in the previous financial year. The loss was attributed in part to a $5.5 billion after-tax charge related to opioid claims and litigation during the period, as well as the comparison against a $2.5 billion after-tax gain from the company's investments in Village MD and Shields Health Solutions in the same period last year. Ginger Graham, WBA's Interim Chief Executive spoke about the company's performance and its dedication to their customers and patients.