Canada's billionaire Weston family has bought the Boots Group pharmacy business for £6.7 billion from private equity firm Sycamore Partners and the Pessina family.
The acquisition was completed through Wittington Investments, the holding company of the Westons. The deal has dashed all hopes of a return to the stock market after 19 years for Boots, ending speculation over a listing that would have provided a much-needed boost to the City of London.
Wittington Investments confirmed that the deal includes Boots' retail operations in the UK and Ireland, Boots Opticians, No7 Beauty Company, and its Thailand and franchised businesses.
The transaction excludes Mexican drugstore Farmacias Benavides and German chain Alliance Healthcare Deutschland. Wittington said it had partnered with Fairfax Financial Holdings, whose portfolio includes investments in the owner of Simba Sleep.
Retail empire of the Weston family
The Westons are best-known in the UK for the Associated British Foods empire, which contains fashion chain Primark, as well as owning department store Fortnum & Mason. Associated British Foods is a major multinational food processing and retail group listed on the London Stock Exchange.
The Canadian side of the family owns the grocery chain Loblaws and pharmacy chain Shoppers Drug Mart through Wittington Investments. They sold department store chain Selfridges for £4 billion in 2022.
Boots stands as Britain's leading pharmacy network, providing healthcare products, prescription dispensaries, and beauty counters across high streets, retail parks, and shopping centres throughout the United Kingdom and Ireland.
Corporate history and previous owners
British chemist Boots began as a family herbal medicine shop in Nottingham in 1849. Over more than 170 years of operation, it developed into one of the country's most recognised commercial brands.
Buyout group Sycamore Partners broke up Boots' former owner, Walgreens Boots Alliance, in August last year after its £7.4 billion takeover of the US group, creating the Boots Group in the process.
Walgreens Boots Alliance boss, Italian billionaire Stefano Pessina, and his wife, Ornella Barra, continued to own a 44 per cent stake in Boots following the creation of the standalone business. Pessina has owned Boots for two decades.
Pessina said it had been "one of the privileges of my and Ornella's life to have been so closely associated" with the pharmacy chain.
Pessina said: "We are delighted to be passing on a thriving Boots to strong and reliable owners who understand the value of its great heritage. Our best wishes go with them as they lead Boots into its next chapter, and our sincere thanks go to all on the Boots’ team who helped us deliver so much over the past 20 years!"
Leadership and future strategy
Galen Weston, who will become chairman of Boots, praised the company's standing across the British Isles. Weston 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."
Weston added: "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."
Boots boss Alex Baldock, who joined last month, said "the opportunity ahead is even greater". Baldock recently joined the retailer after serving as chief executive at electronics retailer Currys, where he led a corporate recovery effort.
Danni Hewson, head of financial analysis at AJ Bell, described Baldock's appointment as CEO as something of a coup following his success at Currys, noting that he looks set to continue in the executive role under Wittington Investments.
Financial performance and growth drivers
Boots runs around 2,000 stores and has 51,000 staff across its retail network. Last year, the business saw annual sales rise 3.2 per cent to £7.5 billion.
The company has been cashing in on strong beauty sales, as "K beauty" products by popular Korean brands rise in popularity. It is also pinning its hopes on a booming wellness market, including vitamin and electrolyte supplements, while the increasing uptake of weight-loss jabs has also given it a boost.
Market reaction and City impact
The acquisition resolves long-running questions over whether Boots would launch an initial public offering on the London Stock Exchange. City commentators had viewed a potential flotation as a key opportunity to attract fresh capital to London's equity markets.
Danni Hewson, head of financial analysis at AJ Bell, said: "There will be disappointment that the London market isn’t getting what could have been a high-profile new listing, particularly at a time when such additions are in short supply."
Hewson added: "The Westons are likely to focus on making Boots run more efficiently and driving growth, potentially investing big sums to improve stores and making it more relevant for the modern age."
