Walgreens To Explore Options For UK's Boots Pharmacy Chain: Sky News

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  • Walgreens Boots Alliance Inc WBA has reportedly lined up Goldman Sachs to advise it on reviewing options for Britain's high street chemist, Boots.
  • Spinning the chain off into a separately listed company could also be a possibility, reported Sky News.
  • Boots operates a network of 2200 stores and employs 55,000 people.
  • In recent months, the speculation has been in the air that WBA might contemplate a sale of its British retail business, following the disposal of its European distribution arm, Alliance Healthcare, for $6.5 billion earlier this year.
  • Sky News report suggests that private equity funds will inevitably be among the suitors for Boots.
  • According to one analyst, the pharmacy chain's value is between £10 billion - £12 billion, although it is unclear whether any emerging bids will be tabled within that range.
  • The likely valuation would be closer to half that range per another market source.
  • The report quoted US-based Walgreens saying, "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."
  • Earlier this week, Walgreens Boots Alliance and McKesson Corp MCK agreed for Walgreens to acquire the remaining 30% share of their GEHE Pharma Handel and Alliance Healthcare Deutschland joint venture in Germany.
  • Price Action: WBA shares closed 4.28% higher at $46.53 on Friday.
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