Exclusive-Boots owners hire consultants for overhaul before possible London IPO in 2027, sources say

By Amy-Jo Crowley and Charlie Conchie

LONDON, April 21 (Reuters) – The owners of British pharmacy chain Boots are working with consultants on a possible strategy overhaul in preparation for a potential London stock market listing which could come as soon as 2027, people familiar with the plans said.

Boots and its private equity owner, Sycamore Partners, have held talks with advisers in recent weeks about the possibility of an initial public offering, three sources told Reuters. 

The consultants have been drafted in to explore growth initiatives around beauty and wellness as well, another source said.

All four sources said discussions are at a preliminary stage and no final decision has been taken on whether to list Boots.

A sale could also be a possibility given private equity interest in the business, one of the people said.

Representatives for Sycamore and Boots declined to comment.  

Walgreens Boots Alliance was taken private by Sycamore last year in a deal valued at about $10 billion. Boots has since split into a standalone entity, with Italian billionaire Stefano Pessina and his family having reinvested in the business.

An IPO in London would be a boost for the British capital as policymakers and regulators have overhauled listing rules in an effort to make its market more attractive. 

Pessina told the Financial Times in an interview on April 6 that a sale of Boots is inevitable “sooner or later”, citing Sycamore’s need to exit. He said the business was being reorganized first and it was too early to say when. 

Sycamore weighed selling Boots in 2022, but scrapped the sale due to market volatility. Boots was valued at 6 billion pounds to 8 billion pounds ($8.11 billion to $10.81 billion) at that time, Reuters reported. 

Boots operates more than 1,800 stores across Britain and offers pharmacy services, health products and beauty brands including No7 and Soap & Glory. 

It is also a major provider of Britain’s National Health Service (NHS) funded pharmacy services, which represent a core part of its earnings.

($1 = 0.7398 pounds)

(Reporting by Amy-Jo Crowley and Charlie Conchie in London; Editing by Anousha Sakoui and Alexander Smith)