The stock of Walgreens Boots Alliance is in the spotlight following a report in London's The Times on January 1 that private equity company Bain Capital was interested in acquiring the American pharmacy chain's Boots operation in the United Kingdom.
Bain approached Walgreens more than two months ago, according to the article. According to the study, Boots only owns around a quarter of its stores and is worth up to $9.4 billion.
According to the Times, supermarket chains and other private equity groups such as CVC Capital Partners, Carlyle Group, KKR, Advent International, and Clayton, Dubilier & Rice are considering an offer.
Boots UK comparable pharmacy revenues increased over 11% year over year in the fourth quarter ended August 31, citing increased demand for pharmacy services, particularly Covid-19 testing. Comparable retail sales climbed 15%, outpacing the company's overall growth.
As internet merchants become increasingly competitive in the drugstore industry, Boots has expanded into other healthcare businesses. Boots has been its retail market share leader, led by beauty. Sales on Boots.com have more than doubled compared to pre-covid levels.
Deal-making in the pharmaceutical and healthcare industries has exploded as consumers focus on bettering their health and companies explore tech-driven means of serving them, fueled by the pandemic.
Pre-market, Walgreens shares are unchanged. On Thursday morning, the corporation is expected to release earnings for the first quarter of the fiscal year 2022, which ended on November 30.