Particle.news
Download on the App Store

Sigma Walks Away From Talks to Buy Boots

The decision reflects strategic and capital limits and leaves Sycamore Partners’ sale process and a possible London listing unsettled.

Overview

  • Sigma said on Monday that it had ended preliminary talks because the transaction would not meet its strategic priorities or capital-investment thresholds.
  • The withdrawal follows an initial review earlier this month in which Sigma had explored the chance to expand overseas as part of its international growth plans.
  • Boots remains on the market under private-equity owner Sycamore Partners with other potential bidders still interested and reported valuations around £7.5 billion.
  • Investors reacted positively to Sigma’s exit, sending the company’s shares up about 8 percent after the announcement.
  • A private sale would likely displace plans for a London initial public offering and could affect Boots’ roughly 1,800 UK stores, employees, and the retailer’s future strategy.