By Dhirendra Tripathi

Investing.com – Walgreens Boots Alliance stock (NASDAQ:) is in the spotlight on a January 1 news report in London’s The Times that private equity firm Bain Capital expressed interest in acquiring the American pharmacy chain’s U.K. business, Boots.

According to the report Bain approached Walgreens two months prior. The report states that Boots may own up to $9.4 million and only holds about 25% of its stores.

Supermarket chains and other PE firms like CVC Capital Partners, Carlyle Group, KKR, Advent International, and Clayton, Dubilier & Rice may also be exploring an offer, the Times said.

Boots UK equivalent pharmacy sales increased by over 11% in the quarter that ended August 31. This was due to stronger customer demand, particularly for Covid-19 test. Comparable retail sales increased 15%, higher than the company’s as a whole.

Boots has expanded into other healthcare business as the online pharmacy industry becomes more competitive. Led by beauty, Boots has been its retail market share. Boots.com’s sales are more than twice as high as pre-covid. 

Deal-making has surged in the healthcare and pharmaceutical industry due to the pandemic. As people pay more attention to their health and tech-driven services, they are able make better decisions.

Walgreens shares remain flat before the market. This Thursday’s earnings report will be made by Walgreens for their fiscal year 2022 quarter 1 for the period ending November 30.