Private equity firm Sycamore Partners is seeking financing from a syndicate of banks to fund its proposed $10bn-plus takeover deal for Walgreens Boots Alliance, according to sources. The company, which has approached lenders including Bank of America and JP Morgan, plans to arrange debt funding for the acquisition.
If successful, the deal would see Sycamore take control of one of the largest providers of retail pharmacy services in the US and Britain private. The takeover could pave the way for an onward sale of Boots, a UK-based retailer employing over 50,000 people and operating from around 1,900 shops.
Stefano Pessina, a key figure in Sycamore’s plans, may end up as the majority owner of Boots depending on the deal structure. The company has been exploring a sale of the business for several years but has previously ruled out offers deemed insufficient. Recent news of the talks have seen WBA’s market value increase to less than $10bn.
Sycamore Partners declined comment, but the move is significant given Pessina’s long history with Boots. The company has undergone significant changes in recent months, including the appointment of a new CEO after its previous managing director resigned for a role in healthcare.
Source: https://news.sky.com/story/boots-bidder-lines-up-banks-to-finance-10bn-takeover-deal-13272772