Canada’s Wittington Investments has agreed to acquire UK pharmacy chain Boots from Sycamore Partners and the Pessina family for $8.9bn, including assumed debt.
Under the deal, the Canadian holding company of the Weston family will take charge of Boots' core pharmacy and store estate across the UK and Ireland.
Fairfax Financial Holdings will participate as Wittington’s partner, while Wittington will manage the business following completion.
The proposed acquisition includes Boots’ pharmacy and retail network in the UK and Ireland, Boots Opticians, No7 Beauty Company, and the company’s Thai and franchised operations.
Sycamore Partners and Italian businessman Stefano Pessina’s family will continue to own the other businesses held within The Boots Group, including Farmacias Benavides in Mexico and Germany’s Alliance Healthcare Deutschland.
Wittington said it intends to invest in Boots’ stores, digital operations, and healthcare services.
Galen Weston, Wittington’s chairman, is expected to become Boots’ chairman once the transaction closes.
He said: “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.”
Completion is targeted for the first quarter of 2027, subject to regulatory clearances and other standard closing requirements.
The acquisition is expected to give Boots a long-term owner with operating experience in pharmacy, health and beauty retail, while separating its UK-focused consumer businesses from the wider group’s remaining wholesale and international assets.
Wittington is the controlling shareholder of George Weston Limited, which owns Loblaw Companies and Choice Properties.
Through Loblaw, the Weston group operates Shoppers Drug Mart, Canada’s “largest” pharmacy, health and beauty business, across a network of 2,800 locations.
Boots CEO Alex Baldock added: “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 buyer also has prior experience in the UK retail market.
Wittington owned department store chain Selfridges from 2003 until 2021, a period during which the department store group developed its international retail profile.
In June, Australia-based Sigma Healthcare walked away from discussions regarding a potential purchase of Boots, stating that a transaction valued at $10bn did not fit its strategic focus.
