Bain and CVC pull out of Boots takeover bid
One of the main bidders vying to snap up high street chemist Boots has abandoned a potential bid for the firm, in a move which could see Asda now move into pole position for a takeover.
Buyout giants Bain Capital and CVC Capital Partners pulled out of submitting an offer for Boots last week, Sky News’ Mark Kleinman first reported.
The consortium’s decision to withdraw from a bid was down to the price expectations of Boots’ owner Walgreens Boots Alliance, according to sources cited by Sky.
Bain and CVC had been working for months on a joint bid for the chemist, with one of CVC’s partners, Dominic Murphy, expected to play a key role in the takeover bid due to his position on Walgreens Boots Alliance board and work with Boots while a partner at private equity firm KKR.
Bain and CVC’s exit from the field leaves Asda, Apollo Global Management and Sycamore Capital vying to take over.
Bankers at Goldman Sachs are overseeing the sale of the firm and suitors are understood to have floated offers north of £6bn last week.
Any sale will mark the breakup of Walgreen Boots Alliance, which was formed when Walgreens snapped up the remaining 55 per cent of the firm it did not already own in 2014.
Boots is one of the UK’s biggest private sector employers with over 50,000 employees and more than 2000 stores across the UK.