Source: Sharecast
The discussions were first reported by the Financial Times, which said both the Sydney-listed pharmacy chain and the billionaire Weston family were holding talks with Boots’ owner Sycamore Partners. The New York private equity firm acquired Boots last year when it bought parent company Walgreen Boots Alliance in a deal worth $23.7bn once debt was included.
In a brief statement, Sigma - one of Australia’s biggest retailers - confirmed that it "continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process". But it also stressed that there was "no certainty that any transaction will eventuate".
The Boots Group, Sycamore and the Weston family have yet to comment on the report.
However, according to the FT, citing unnamed people familiar with the situation, it is the Canadian branch of the Weston family that is pursuing talks. It already owns grocery chain Loblaws and Shoppers Drug Mart through its Wittington Investments vehicle, while the UK side has a controlling stake in Primark-owner Associated British Foods.
Sigma, meanwhile, is understood to be focusing on building its international presence after joining forces with Chemist Warehouse Group in a $5.8bn tie-up merger. It last month announced a joint venture with London-focused pharmacy chain GreenLight Healthcare.
Boots has around 1,800 stores across the UK as well as beauty brands such as Soap & Glory. The 177-year-old business merged with Alliance UniChem a decade ago to become Alliance Boots, before being acquired by KKR and Stefano Pessina. Walgreens then acquired a 45% stake in 2012 and took full control in 2014.
Sycamore spun off Boots into The Boots Company, a standalone private business, shortly after acquiring it. As well as a potential sale, the firm is also understood to be considering returning Boots to the London market through a possible initial public offering.
Shares in Sigma closed down 5%.
