US private equity firms Bain Capital and CVC Capital Partners are reportedly planning a buy-out of Boots, according to sources reported by Sky News.

The sources said that firms are being advised by financial advisor Lazard on the potential acquisition.

The deal is set to involve “substantial investment” in Boots’ beauty, digital, and healthcare products according to the report.

The pharmacy and health and beauty chain currently employs over 50,000 people across 2,000 UK stores.

The potential deal will involve executive Dominic Murphy, who worked on the £11 billion takeover of Alliance Boots by private equity firm KKR in 2007, according to the report.

In December, it was reported that Boots’ parent company Walgreens Boots Alliance was in discussions with Goldman Sachs about finding potential buyers for the company.

The UK retail industry has seen substantial interest from US private equity firms over the last year.

In December, the Competition and Markets Authority (CMA) launched an investigation into the $7 billion takeover of Morrisons.


This followed the announcement earlier that month that US private equity firm Clayton Dubilier & Rice (CD&R) had bought the retailer.

Boots has performed well during this financial year; Boots’ owner Walgreens Boots Alliance (WBA) recently announced that the company's financial results have exceeded expectations in its first quarter.

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