Sycamore Partners is in talks to sell Boots for approximately $10bn, scrapping the high street chemist's planned return to the London stock market, according to the Financial Times. The private equity firm has been weighing whether to float the company or pursue a trade sale since acquiring it from Walgreens, and appears to be leaning toward the latter.

Two potential buyers have emerged, with the Canadian arm of the Weston family—owners of Loblaws and Shoppers Drug Mart—in more advanced discussions. Australian pharmacy group Sigma Healthcare, which merged with Chemist Warehouse in a $5.8bn deal last year, confirmed preliminary talks and saw its shares drop 4.5%. Both companies bring pharmacy expertise that could help navigate Boots' turnaround.

Boots has shown improvement under Sycamore's ownership, with revenue rising 3.2% to $10bn in the year to August and pre-tax profit climbing 25% to $450m. New beauty lines and demand for weight-loss injections have boosted both retail and pharmacy operations. Selling into this momentum avoids the risks of a choppy IPO market.

The sale would mark another chapter in Boots' uncertain recent history. Walgreens previously attempted to sell the chain in 2022, drawing bids from Apollo and TDR Capital that ultimately fell short. Now under private equity control, the 175-year-old pharmacy chain faces another potential ownership change.