Walgreens Boots Alliance stock jumps amid reports it is trying again to offload Boots

16 May 2024 --- Walgreens Boots Alliance (WBA) is attracting investor interest once again on reports it is making a second attempt to offload the UK-based drugstore chain, Boots.

According to Bloomberg, WBA has reached out to potential buyers and is working with advisors to hold preliminary discussions. 

Boots is currently valued at £7 billion (US$8.8 billion), according to Investopedia. 

Personal Care Insights reached out to the Illinois, US-based company for comment and was told it would not provide information on the “speculative” news report.

Potential plans
Sources familiar with the plans have reportedly said no that no formal sale process has begun as yet but that hasn’t deterred investor interest. Shares of WBA are up about 5% since reports re-emerged that WGA is courting potential buyers again.

Two years ago, Boots’ parent company, WBA, tried — and failed — to offload the company. The American drugstore giant said it did not receive adequate offers due to challenging market conditions, so it scrapped plans for the sale.

Boots is a popular destination for beauty shoppers in the UK.Last fall, however, reports surfaced about WBA paying US$1.25 billion to end its responsibilities for Boots’ pension scheme to take another shot at selling the British chain.

Paying and promoting
Earlier this year, a group of shareholder activists targeted Boots, claiming it was not paying its employees a real living wage. Personal Care Insights spoke to a group of shareholder activists during these discussions.

The Shareholder Commons said it campaigns for responsible investment and wants the UK pharma chain’s parent company, WBA, to create policies with frameworks and timeframes that pay its workers “a decent wage from day one.”

Additionally, Walgreens’ drug stores in the US partnered with Kimberly-Clark brands to end period poverty and raise awareness of the growing need for access to period care. For every U by Kotex or Thinx product purchased in-store or online at Walgreens until June 30, two period products will be donated to the Alliance for Period Supplies.

By Sabine Waldeck