Boots owner mulls taking £48bn company private

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Walgreens Boots Alliance Stefano Pessina
Walgreens has over 18,750 stores in 11 countries and has annual revenues of nearly £30 billion
// Boots’ US-based parent company considers taking the company private after talks with private equity groups
// Last month, Walgreens Boots Alliance posted a drop in full-year profits despite increased sales
// Walgreens Boots Alliance has been under pressure to cut costs in the last year

Boots parent company Walgreens Boots Alliance is considering taking the company private after holding talks with private equity groups.

Walgreens Boots Alliance has drafted in Evercore Partners to examine whether a deal can be agreed.

The health and beauty retail group is currently worth over $55 billion (£48 billion).


READ MORE: High street turmoil impacts Boots sales


Last month, Walgreens Boots Alliance posted a drop in full-year profits despite increased sales in what chief executive Stefano Pessina described as “a challenging operating environment”.

Walgreens Boots Alliance has over 18,750 stores in 11 countries and has annual revenues of nearly $34 billion (£30 billion).

However, the company has been under pressure to cut costs as its operating income fell by a fifth in the last year.

The group posted a 20.5 per cent decline in operating income to $5 billion (£3.9 billion) in the year to August 31, down 9.6 per cent on an adjusted basis to $6.9 billion (£5.4 billion).

The talks come with Walgreens Boots Alliance share price down nearly 40 per cent since last December.

If a deal was to go through, a leveraged buyout would require the involvement of several private equity firms willing to invest lump sums of cash.

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