Sigma Healthcare in Preliminary Talks to Buy U.K.’s Boots
Shares of Sigma were 5.1% lower by midday in Sydney
- Australia’s Sigma Healthcare is in early discussions regarding a potential acquisition of U.K. drugstore chain Boots.
- Private-equity firm Sycamore Partners is reportedly in talks for a possible $10 billion sale of Boots.
- Sigma recently agreed to a joint venture with Greenlight Healthcare to introduce its Chemist Warehouse brand in the U.K.
Australia’s Sigma Healthcare SIG -6.85%decrease; red down pointing triangle said it is involved in early discussions about a potential acquisition of U.K. drugstore chain Boots, as the company seeks to grow further beyond its home market.
“Sigma continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process,” the pharmacy group said in an Australia stock-exchange filing Wednesday. It said there is no certainty of a deal.
Shares in the company were 5.1% lower by midday in Sydney.
Private-equity firm Sycamore Partners, the owner of Boots, is in talks with parties including Sigma and the billionaire Weston family on a possible $10 billion sale of the retailer, the Financial Times reported, citing people familiar with the situation.
Sycamore took control of Boots last year through the acquisition of parent company Walgreens Boots Alliance. It entered discussions with potential strategic buyers before Easter, according to the FT.
A spokesman for Sycamore declined to comment. Boots didn’t immediately respond to a request for comment.
Sigma, which is valued around $22 billion, last month said it had agreed to form a joint venture with Greenlight Healthcare to get its Chemist Warehouse brand into the U.K. market.
Greenlight, an employee-owned pharmacy group, has 22 stores in and around London. Sigma said it will acquire a 75% interest in a number of stores.
Chief Executive Vikesh Ramsunder said at the time that international expansion is one of Sigma’s four key strategic growth pillars. He said the Greenlight joint venture would provide “measured market access into the U.K.”