Report: British Private Equity Firm CVC Joins Bain Capital in Joint Bid for Walgreens Boots Unit

Bain Capital and CVC Capital Partners are putting together a multibillion-pound joint bid for pharmaceutical giant Boots, according to multiple reports Tuesday (Jan. 11).

Boots has more than 2,000 stores and more than 50,000 employees around the world. Lazard is advising Bain and CVC on its joint bid for Boots, the report says, noting CVC Managing Partner Dominic Murphy, director of Walgreens Boots Alliance, might recuse himself from the talks because he worked for private equity firm KKR when it took over Alliance Boots in 2007. Neither Bain nor CVC would comment.

Also read: Walgreens Focused on Growing Health Unit as Solid Int’l Results Complicate Sale of Boots Unit

Last week, during the company’s first-quarter earnings call, Walgreens CEO Rosalind Brewer said the company is “applying a rigorous strategic lens to our equity investments, and exploring all options to unlock value.”

The key part of the proposed acquisition from Bain and CVC’s perspective is “substantial investment” in Boots’ digital, beauty and healthcare services offerings, according to the Sky News report, which adds several other private equity firms are expected to consider bids for the chain.

It’s still possible none of the bids for the 172-year-old British health and beauty conglomerate are successful, the report says, although an auction in the spring would likely garner high levels of attention. Analysts predict Boots could fetch between 5 billion pounds ($6.84 billion) and 6 billion pounds ($8.21 billion).

Walgreens acquired a 45% stake in Alliance Boots in 2012, completing its buyout of the business two years later. Boots cut 4,000 jobs in the early days of the COVID-19 pandemic in 2020 as part of a restructuring of its Nottingham head office and store management teams.

Even before the pandemic, Boots announced plans to close about 200 U.K. stores. John Boot started the company in 1849 as an herbal remedies store.

Related: Bain Said to Eye Takeover of Boots UK From Walgreens

Bain Capital approached Walgreens months ago about taking over Boots, according to a Forbes report earlier this month, although Walgreens didn’t comment on the matter.

One analyst put Boots’ value between 10 billion pounds ($13.68 billion) and 12 billion pounds ($16.41 billion).