Walgreens Boots Alliance is extending the May 16 deadline to later this week for bidders to submit their final offers to buy its United Kingdom-based Boots division, Bloomberg reports.
Why it’s the BFD: Several bidders are circling the company and any move to the process impacts the potential outcome of what could be a more than $8 billion deal.
Details: In pole position for the U.K. pharmacy business is a bidding group comprised of the Issa brothers and TDR Capital, who together acquired supermarket chain Asda from Walmart, the report said.
- Also vying for ownership is Mukesh Ambani, the Indian billionaire and owner of Reliance Industries. He is partnering with PE firm Apollo Global Management. (More on Reliance below.)
- Sycamore Partners, the owner of retailers such as Staples and Belk, is also said to still be involved.
What we’re watching: The valuation multiple of the winning offer and the amount of debt lined up to finance it will shed light on the current states of both retail M&A and the capital markets.
- And it’s those insights that will help handicap other potential deals for legacy brick-and-mortar retailers currently in the market.
Of note: Last week Walgreens sold 6 million shares in pharmacy wholesaler AmerisourceBergen, raising $900 million in proceeds that will be used to pay down debt and fund strategic priorities, according to an announcement.
- The move is in line with Walgreens’ focus on its core U.S. health care division, which it plans to reinvest.
