Boots is to be acquired in an $8.9 billion deal which will see the Nottingham-headquartered retailer come under the ownership of the Weston family’s investment company.
Wittington Investments, the Canada-based holding company of the Weston family, has entered into a definitive agreement to acquire Boots and associated businesses currently majority owned by Sycamore Partners, in partnership with Stefano Pessina and his family.
The purchase price is $8.9 billion, including assumed debt.
The deal includes Boots’ retail operations in the UK and Ireland, Boots Opticians, No7 Beauty Company, and its businesses in Thailand and other franchised markets.
Sycamore Partners, together with Stefano Pessina and his family, will retain ownership of The Boots Group’s remaining interests in Farmacias Benavides and Alliance Healthcare Deutschland.
Boots employs more than 50,000 people and has its headquarters in Nottingham.
Alex Baldock, chief executive of Boots, said: “Boots matters. Every day, our colleagues give millions of people longer, healthier and happier lives.
“Those customers and patients trust in Boots’ unmatched authority, capability and leadership across health, wellness and beauty.
“For all of our social impact and commercial success to-date, the opportunity ahead is even greater.
“I look forward to making the most of that opportunity and building a world class Boots for our colleagues, customers, patients, and communities.”
Wittington said it plans to invest in Boots, including upgrading stores, improving its online operation and supporting the expansion of healthcare services.
The Weston group has longstanding interests in retail, pharmacy and beauty and previously owned Selfridges between 2003 and 2021.
Toronto-based Fairfax Financial Holdings is partnering with Wittington on the acquisition, although Wittington will have operational control once the deal completes.
Galen Weston, chairman of Wittington, will become chairman of Boots.
He said: “Boots is one of Britain’s most enduring businesses, with a rich heritage, a trusted name and a vital role in everyday life across the UK and Ireland.
“We have great respect for Boots’ legacy and leading market position.
“We see a meaningful opportunity to make a great business even better through stable long-term ownership, further capital investment, and the renewed operating focus required to serve customers with excellence for generations to come.”
Prem Watsa, chairman and chief executive of Fairfax, said the company was pleased to be partnering with Wittington to acquire what he described as “a leading historic brand in the UK and Ireland”.
Stefan Kaluzny, managing director of Sycamore Partners, said Boots had been re-established as a standalone company a year ago, allowing its management team and more than 50,000 colleagues to focus on the business.
