The global investment firm is “preparing a proposal” to potentially buy out shareholders of Walgreens Boots Alliance, taking the company private, Bloomberg said on Monday (November 11).

It has “formally approached” the US-based health and beauty giant, but the two companies could still “decide against pursuing a deal”, according to Bloomberg.

Walgreens Boots Alliance and KKR declined to comment to C+D.

Walgreens Boots Alliance chief executive officer Stefano Pessina previously partnered with KKR in 2007 to acquire Alliance Boots, seven years before it was bought by Walgreens.

Last week, it was reported that Boots’ parent company was exploring the possibility of a private buyout. However, Reuters claimed that many private equity firms had “pushed back on the idea”, due to concerns about the company’s “business prospects”.

In its latest financial results, Walgreens Boots Alliance reported that its adjusted operating income fell 11.1%, despite overall sales for June-August across the group having increased 2.6% compared with the same period last year.

Income drop and pharmacy closures

The business’s adjusted operating income in its retail pharmacy international division – which includes Boots UK – fell to $194 million (£150.7m) for the same period.

Boots is “on track” to close the remaining 182 of a planned 200 branches before September 2020, it said last month.