Boots’ owner reportedly gives potential buyers until mid-May to submit bids
Boots UK’s parent company has given prospective bidders until May 16 to submit their final offers for the multiple, Sky News has reported.
The news outlet reported today (April 26) that Walgreens Boots Alliance’s advisers at Goldman Sachs have notified bidders of the mid-May deadline for formal offers.
Asda’s owners – billionaire Issa brothers and TDR Capital – and the asset management company Apollo Global Management are expected to put forward final offers for the UK community pharmacy chain, Sky News reported.
However, the outlet claimed that the multiple is expected to receive “fewer than a handful of bids” by the given deadline.
This is due to some parties being put off by the asking price set by Boots’ parent company and “the backdrop of inflation and other cost pressures expected to hamper Boots' near-term financial performance”, Sky News reported.
Walgreens Boots Alliance refused to comment when approached by C+D.
Earlier this month, The Telegraph reported that US private equity firm Bain Capital and UK-based CVC Capital offered £4 billion for the UK pharmacy chain before bowing out of the sale process.
Previous reports from The Times, Sky News and The Guardian have indicated that the sale could generate between £6bn and £10bn.
Meanwhile, The Times reported on April 3 that Walgreens Boots Alliance had offered to keep a stake of up to 30% in the Boots UK pharmacy chain if and when it is sold, anticipating that a deal could be stuck in May.
