Two of the world’s largest buyout firms Bain Capital and CVC have reportedly joined forces to launch a joint takeover bid for Boots.
Bain and CVC are currently being advised by banks at Lazard around a multibillion-pound bid for the health and beauty giant, according to Sky News.
Dominic Murphy, a current managing partner at CVC, was previously an architect of an Alliance Boots takeover in 2007 when he worked for private equity firm KKR, a deal worth £11bn at the time.
Murphy, who is currently a director at Boots’ US parent company Walgreens Boots Alliance (WBA), is expected to recuse himself from any discussions around a sale to avoid a conflict of interest due to his role at CVC.
A potential deal involving Bain and CVC is expected to focus on investment in the areas of digital, beauty and healthcare, while it is anticipated that several other private equity firms are also set to bid for Boots.
WBA has confirmed it is conducting a strategic review around the business, explaining in a statement: “We can confirm that Walgreens Boots Alliance, in line with its recently announced priorities and strategic direction that include a greater focus on US healthcare, has announced a strategic review, primarily focused on our successful Boots business, including No7 Beauty Company.
”This strategic review is at an exploratory stage and further announcements will be made in due course, after the right decision has been reached for Boots’ future and for all stakeholders.”
The company is also said to have lined up Goldman Sachs to advise on these potential opportunities for the health and beauty retailer.
The news of Bain and CVC joining forces for a potential bid comes following the announcement of strong trading figures at Boots last week. Speculation of a sale had mounted in recent months after WBA revealed a renewed set of priorities in October which placed focus on the North American market.
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