Wittington Investments said it will purchase Boots for US$8.9 billion, including debt, from Sycamore Partners, with closing expected in the first quarter of 2027.
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Wittington Investments, the Toronto-based holding company controlled by the Weston family, says it will buy the U.K. pharmacy chain Boots for US$8.9 billion (C$12.7 billion), including debt, from private equity firm Sycamore Partners.
Under the announced deal, Wittington will acquire Boots’ retail operations in the U.K. and Ireland as well as Boots’ operations in Thailand, its franchised businesses, its optical division and No7 Beauty Company.
Fairfax Financial Holdings Ltd., based in Toronto, will partner with Wittington on the acquisition, the company said. Wittington expects it could complete the transaction in the first quarter of 2027 and, upon closing, Galen Weston will become Boots’ chairman with Wittington having operational control.
In a press release, Weston said he was drawn to Boots because it is “one of Britain’s most enduring businesses, with a rich heritage, a trusted name and a vital role in everyday life across the U.K. and Ireland.” He added that he believes there is “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.”
The announcement comes as Boots is described as having about 1,800 locations, after being founded in 1849 and previously operating for a time in Canada. The reporting also notes that Loblaw bought Shoppers Drug Mart in 2014, and that Shoppers has about 1,350 stores in Canada.
As part of the transaction announced Wednesday, Sycamore Partners, along with Stefano Pessina and his family, will retain ownership of The Boots Group’s interests in Farmacias Benavides and Alliance Healthcare Deutschland.
In a Sept. 30 note to investors, RBC Capital Markets analyst Irene Nattel wrote that she believed the deal made some sense, citing “substantial organizational knowledge and understanding of retail pharmacy within the Weston family of businesses and investments.” She said she did not expect the potential acquisition to have much impact on Loblaw or George Weston.
Sycamore said it would not have anyone from the company available for an interview about the deal on Wednesday, and quoted managing director Stefan Kaluzny as saying the transaction reflects Boots being re-established as a standalone company and the “incredibly bright future ahead.”
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