Sigma ends Boots takeover discussions over strategic fit

Australia-based Sigma Healthcare has withdrawn from discussions implicit a imaginable acquisition of UK pharmacy concatenation Boots, saying a woody valued astatine $10bn would not align with its strategy.

The company, which owns Chemist Warehouse and runs a pharmaceutical wholesale business, confirmed to the Financial Times that it had precocious been successful talks with Boots proprietor Sycamore Partners.

In a statement, Sigma said it would not proceed with what it called a "potentially unsocial opportunity" to bargain the UK-based company.

It added that "the institution has concluded that specified an acquisition would not presently conscionable its strategical and superior concern objectives".

Boots has been the taxable of repeated ownership speculation successful caller years. It was enactment up for merchantability successful 2022, but the process was dropped aft offers did not scope the expected level.

Walgreens had drawn involvement astatine the clip from Apollo and TDR Capital.

Sycamore took power of Boots erstwhile it acquired Walgreens Boots Alliance for $23.7bn past year.

It aboriginal reorganised the wider radical into 5 abstracted operating divisions.

The UK retailer has besides been linked to a imaginable banal marketplace flotation.

The Weston household has separately held talks astir acquiring Boots done Wittington Investments, the holding institution down Canadian supermarket radical Loblaw and pharmacy concern Shoppers Drug Mart.

Shoppers Drug Mart was acquired for C$12.4bn ($8.90bn) successful 2013 and present operates much than 1,300 outlets successful Canada.

Sigma had been viewed arsenic a earthy bidder for Boots pursuing its enlargement into the UK marketplace past period via a associated task with GreenLight Healthcare, which operates 22 pharmacies successful London and adjacent areas.

The Sydney-listed radical said astatine the clip that it intended to person immoderate of those stores to the Chemist Warehouse format successful the coming months.

The company, which completed its near-$6bn merger with Chemist Warehouse past year, said it would proceed to ore connected Australia portion inactive reviewing different acquisition opportunities.

Boots posted gross maturation of 3.2% to £7.5bn ($10.07bn) for the twelvemonth to August 2025, supported by caller quality marque additions and accrued request for weight-loss jabs.

Pre-tax nett roseate 25% to £337m, partially owed to the reversal of impairment charges.

"Sigma ends Boots takeover discussions implicit strategical fit" was primitively created and published by Retail Insight Network, a GlobalData owned brand.