TWO BUYOUT giants have teamed up to launch a multibillion pound takeover bid for high street chemist Boots in a move that will break off a key pillar of the chain's owner Walgreens Boots Alliance (WBA).

Bain Capital and CVC Capital Partners are putting together a joint bid for the 172-year-old high street stalwart in a plan that requires the chain to make substantial investment into its digital, beauty and healthcare services offerings, Sky News' Mark Kleinman first reported yesterday.

Last night WBA confirmed it was undertaking a "strategic review... primary focused on our successful Boots business" as the company looks to have a greater focus on the lucrative US healthcare market.

Any deal would break-up WBA, which was formed when Italian-Monegasque billionaire and then-chief executive Stefano Pessina snapped up the 55 per cent stake in Alliance Boots that Walgreens did not already own.

WBA first called in Goldman Sachs in December to explore a sale of the pharmacy at a potential valuation of around £10bn, City A.M. understands. Boots, which trades out of 2,200 stores and employs more than 55,000 people, is expected to be subject to a number of other offers from private equity firms as part of the process being run by Goldman.

One of CVC's team of managing partners involved in the deal, Dominic Murphy, played a key role in the £11bn takeover of Alliance Boots when he worked for private equity firm KKR in 2007.

Murphy remains a director of Walgreens Boots Alliance and will reportedly recuse himself from boardroom discussions because of his interest in the firm.

WBA said in a statement: "Walgreens Boots Alliance (WBA) does not comment on market speculation and Boots is an important part of the group.

"However, it is accurate that WBA announced a renewed set of priorities and strategic direction for the Group in October, which includes a more pointed focus on North America and on healthcare."

Boots was founded in 1849 by Nottingham man John Boot. It has played a key role in the roll-out of the Covid- 19 vaccine programme.

(c) 2022 City A.M., source Newspaper