After years of speculation, British retailer Boots has a new owner.
Toronto-based Wittington Investments, the holding company of the Weston family, has entered into a definitive agreement to acquire Boots, which is majority owned by Sycamore Partners, in partnership with Stefano Pessina and his family. The deal is valued at $8.9 billion, including assumed debt.
Under the terms of the agreement, Wittington will acquire Boots’ retail operations in the U.K. and Ireland; Boots Opticians, and No7 Beauty Company, and its Thailand and franchised businesses. Sycamore Partners and Pessina will retain ownership of The Boots Group’s other interests in Farmacias Benavides and Alliance Healthcare Deutschland.
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Fairfax, a Toronto-based holding company, is partnering with Wittington on the acquisition, with Wittington having operational control upon close. Galen Weston, chairman of Wittington, will become chairman of Boots.
“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. I’ve seen enough already of our colleagues passion and expertise to understand why they do,” said Alex Baldock, chief executive officer of Boots. “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.”
The Weston group is very familiar with this type of retail, overseeing 2,800 Shoppers Drug Mart locations in Canada via Loblaw Companies Ltd. Wittington also previously owned Selfridges, the famed British department store, from 2003 to 2021.
“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 U.K. and Ireland,” Weston said. “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. We are delighted to partner with Fairfax, which brings an extensive track record of long-term investing in leading retail brands, and shares our conviction in Boots’ future.”
Wittington plans to invest Boots, including upgrading stores, optimizing the online experience and supporting the expansion of health care services available to customers.
Of the sale, Stefan Kaluzny, managing director of Sycamore Partners, said: “One year ago, we reestablished Boots as a stand-alone company, allowing its management team and more than 50,000 colleagues to focus solely on their business and customers. This transaction is a testament to the work they have done and the incredibly bright future ahead.”
The transaction is subject to certain regulatory approvals and the satisfaction of customary closing conditions and is expected to close in the first quarter of 2027.
