City faces battle to win Boots listing after private equity sale

By EMILY HAWKINS

Updated: 21:50 GMT, 7 March 2025

The owner of Boots has been sold to private equity for almost £8billion – reviving hopes that the pharmacy chain could be floated in London.

New York-listed Walgreens Boots Alliance, which owns the High Street firm as well as US group Walgreens, has been snapped up by buyout group Sycamore Partners.

The deal is expected to result in parts of the business being sold by Sycamore – including Boots.

Pressure is now on ministers and City executives to persuade Sycamore to list Boots on the London stock market through an initial public offering (IPO).

That would be a major boost for the Square Mile and wider economy following a dearth of listings in recent years.

But it is feared Sycamore will in fact sell Boots to another private equity group rather than return it to the London market. Russ Mould, investment director at investment platform AJ Bell, said: ‘Sycamore is unlikely to keep Boots once the takeover is completed.

Deal: Walgreens executives Stefano Pessina and wife Ornella Barra have offloaded Boots

The logical route is to first find a buyer and if that doesn’t work, it might float the business on a stock market.

‘The London Stock Exchange might be on a charm offensive in support of an IPO but Sycamore will care more about making money now rather than later.’

Firms who showed interest in buying Boots two years ago – including TDR, Apollo and Reliance Industries – may throw their hat into the ring again. Industry expert Jonathan De Mello believes Sycamore may have already agreed a sale in principle with a buyer.

Star quality: No7 boasts actress Keeley Hawes as its ambassador

Although an initial sales process was abandoned in 2022 due to suitors reportedly being unwilling to pay a £5.5billion price tag, Boots is regarded as more attractive to buyers now.

It has enjoyed bumper sales in recent months thanks to a boom in the health and beauty market after the pandemic.

Sales have soared thanks to popular skincare and fragrance brands, such as No7 which boasts actress Keeley Hawes as its ambassador and Floral Street, while its advantage loyalty card has also helped business thrive.

Retail analyst Nick Bubb said it was hard to gauge how much Boots could be worth as owner Walgreens, led by Stefano Pessina, does not break down its sales and profits. The firm was reportedly valued at around £7billion last year, but Bubb said a £5billion price tag ‘feels more realistic’.

Pessina’s wife Ornella Barra, chief operating officer at Walgreens Boots Alliance in charge of overseeing Boots, wrote to staff yesterday to reassure them ‘nothing is changing today’.

Should Boots return to the UK markets, it would be a much-needed vote of confidence.

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City faces battle to win Boots listing after private equity sale

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