Boots could be sold off in an £8 billion deal following 300 store closures across high streets up and down the UK.
The recognised store could be handed over to a private equity firm by its owners Walgreens Boots Alliance, which is facing financial difficulty.
The sale to the firm, Sycamore Partners, could be announced as early as this week, according to Bloomberg.
It comes as fewer stores are now across high streets in the UK after 300 Boots shops closed at the end of 2024.
Poundland’s owner is also considering a possible sale of the UK discount retail chain.
Walgreens Boots Alliance, announced in June last year that it would close 650 outlets to make £618 million in savings.
Across the UK right now, Boots operates around 1,800 shops.
A takeover by Sycamore Partners could mean that it splits the company which means it could be floated on the London stock market.
Despite the recent high street closures, retail sales have increased by 8.1% year-on-year and online sales have risen by 23%.
But Walgreens has faced difficulties over recent years after its market value fell by 80%.
Julie Fisher, the UK CEO at Simply Business, told Metro that current economic conditions are changing the face of the country’s high street.
‘There are all clear signs that our high streets, as we know them, are under threat, and will become unrecognisable without intervention.
‘Many high street staples could disappear – from newsagents to fishmongers, 132,945 small businesses are at risk of permanent closure within just 15 years.’
She also added that the government budget is having an impact on the changing face of our high street.
‘Cuts to business rates relief and increases to employers’ National Insurance contributions, alongside other tax changes, are leaving many on the brink,’ she said.
‘With falling footfall and rising costs, it’s not just big retailers suffering – independent businesses are bearing the brunt.
‘Small business owners must continue to demonstrate the adaptability, creativity, and resilience they’re known for.
‘With growth a key priority, what’s best for the UK’s 5.5 million small businesses is best for our economy – and we urge the government to create the conditions for them to thrive.’
Jonathan De Mello, boss of the JDM Retail Consultancy, said: ‘This acquisition would no doubt lead to them selling or more likely taking public, Boots.
‘Boots has performed well over the past few years and is a leaner business overall now with fewer stores and staff, and no pension scheme liability. A stock market listing of Boots could potentially be quite attractive for investors at this point.’
Nick Bubb, a retail analyst, said Boots is ‘very floatable’ after a post-pandemic boom in health and beauty.
Boots has been a pillar of British life since opening their doors in Nottingham in 1849.
The news comes after Poundland’s owner is considering a possible sale of the UK discount retail chain after it struggled amid tough sales.
It also fears that incoming budget measures that will send wage costs soaring – another slap in the face to high street stores.
Pepco said it was considering ‘all strategic options’ to help the chain that has around 800 stores across the country.
Pepco said: ‘Poundland is a strong brand that serves millions of customers every week and had around 2 billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
‘From April 2025, the UK Government’s additional tax changes announced in the budget will also add further pressure to Poundland’s cost base.
‘Therefore, the board is actively evaluating all strategic options to separate Poundland from Group during financial year 2025, including a potential sale.’
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