Many years ago the co-founder of Chemist Warehouse said he built his empire after being inspired by British pharmacy giant Boots, now he’s in talks to buy it out.
Sigma Healthcare, the owner of Chemist Warehouse, on Wednesday revealed it is in discussion with the owner of Boots to acquire the brand.
Sigma Healthcare, the owner of Chemist Warehouse, confirmed a report by the Financial Times that it has put in a bid for The Boots Group, with the company currently asking for $14 billion (US$10 billion).
However, Sigma added ‘there is no certainty that any transaction will eventuate’.
The announcement from Sigma saw its shares fall 4.6 per cent to $2.79 in early trading, the Australian Financial Review reported.
Nevertheless, Chemist Warehouse co-founder Mario Verrocchi is hopeful the buy-out could be what his company needs to go global.
Sigma is facing impressive competition for the Boots empire, which has around 1,800 stores in the United Kingdom and a 40 per cent market share.
The British pharmacy made £7.3 billion (AU$13.4 billion) in revenue in 2024 and posted a £211 million (AU$403 million) profit.
Sigma Healthcare, the owner of Chemist Warehouse, is in talks to buy British pharmacy giant Boots
The Boots Group (above) is currently up for sale with an asking price of $14 billion
It’s understood private equity firm Sycamore Partners, the current owner of Boots, is also in talks with Canada’s Weston family, which own grocery chain Loblaws and pharmacy chain Shoppers Drug Mart.
Sycamore Partners took over Boots last year from its parent company, Walgreens Boots Alliance.
The acquisition of Boots would be a full-circle moment for Chemist Warehouse co-founder Verrocchi.
In 2023, Verrocchi said he and co-founders Jack and Sam Gance had looked to the British pharmacy giant when planning their own venture in Australia back in 1980.
‘I saw Boots and I thought, s***, that’s who I want to be,’ Verrocchi said.
If successful, the deal between Sigma and Sycamore would be the biggest offshore acquisition by an Australian company since 2022, when biotech company CSL bought Swiss drugmaker Vifor for $18.8 billion.
However, the possible expansion overseas likely rang alarm bells for investors as popularity in Australia doesn’t always translate to success overseas.
Verrocchi himself has previously pointed to Bunnings, which failed its expansion into Britain and Ireland a decade ago.
Chemist Warehouse co-founder Mario Verrocchi (left) Sigma chief executive Vikesh Ramsunder (right) both previously noted interest in buying Boots
The yellow price tags and messy layouts are a deliberate marketing strategy which gives shoppers the impression they’ve stumbled into a backroom warehouse
Verrocchi in 2023 said he and other Chemist Warehouse (above) co-founders had looked to Boots for inspiration when creating the brand
‘We are not that brave,’ Verrocchi said in 2023.
‘We do everything with our own money so we don’t go out and borrow $5 billion to buy a chain in the UK and try and sell barbecues and sausages in a market where it f***ing snows.’
Boots is another story in Verrocchi’s eyes though, with he and Sigma chief executive Vikesh Ramsunder having previously flagged it as a brand that could be transformed under Chemist Warehouse’s vertically integrated model.
‘I think we will be better than Boots. Boots used to be my hero. Today, I would say no way in hell. Boots have lost their way,’ Verrocchi said last year.
The executives also have the advantage of personal insight of the market with Sigma-owned stores already open in Ireland as well as New Zealand and Dubai.
Sigma and Chemist Warehouse officially merged in early 2025 to create a pharmacy giant worth $34 billion.
It oversees almost 1,000 stores under the Chemist Warehouse, Amcal and Discount Drug Stores brands.
