American owners will put Boots up for sale.
A feature on high streets for 172 years, the pharmacy chain could fetch more than £10billion.
Boots operates around 55,000 people and has over 2,200 UK stores.
However, Walgreens Boots Alliance (WBA), the parent company of this subsidiary said that it wants to concentrate more on North American healthcare.
WBA has hired Wall Street bank Goldman Sachs as its representative to review the company, which could lead to Boots being taken over.
Boots can trace its origins back to 1849 when John Boot, a farmer and chemist opened a shop selling herbal remedies in Nottingham. Pictured: Staff from Boots the Chemists in Hartlepool outside their store in 1924
Daily Mail was told by a City source that the sale of the company is “not immediately imminent” but in the works. Boots may also be able to join the stock exchange.
Boots selling its entire business would be the most significant deal in years for a high-street chain. Ministers would examine it because Boots is a key player in the delivery of public healthcare services.
Price will be closely monitored. Walgreens paid £17billion to acquire Alliance Boots in two transactions in 2012 and 2014.
Some analysts have said Boots could be worth more than £10billion, according to Sky News, which first reported the sale. Boots’ financial documents say it made a £131million profit last year.
Sebastian James, former Dixons Carphone boss, has been leading the company’s management since 2018.
Boots can trace its origins back to 1849 when John Boot, a farmer and chemist opened a Nottingham herbal remedies shop. Jesse, the son of John Boot, expanded it and there were 1,000 UK-based stores by 1933.
The company has seen multiple changes over the course of 15 years. Boots was merged with drug wholesaler Alliance Unichem in 2006, then in 2007 private equity titan KKR acquired the combined group for £11billion.
Walgreens purchased a 45% stake in Alliance Boots and the remainder of the company two years later. WBA, a Chicago-based company has stated that it wants to be more focused on North America as well as healthcare.
Boots,which has 2,200 UK stores and employs around 55,000 people, is set to be put up for sale by its American owner for more than £10billion
Question marks were raised about Boots’ future when WBA sold its European distribution arm, Alliance Healthcare, for £4.9billion earlier this year.
WBA stated that Boots has been performing well with its online trading outperforming all others. Its stores are under increasing pressure, and around 200 branches were set to close shortly before the pandemic.
Last year, it announced that plans were to reduce 4,000 positions in its Head Office and Management Teams.
WBA stated in a statement that the Walgreens Boots Alliance did not comment on speculation about market conditions and Boots was an integral part of their group.
“However, WBA has announced in October a new set of priorities for its group and a strategic direction that includes a stronger focus on North America.
“The Boots performance and that of the entire international division continues to please the group.