Boots in £6.5 billion acquisition deal

The retail operations of Boots in the UK and Ireland, including Boots Opticians, are set to be acquired by Wittington Investments in an $8.9 billion (approximately £6.5 billion) deal.

The holding company of the Weston family, based in Canada, has entered into a definitive agreement with Sycamore Partners and the Pessina family to acquire Boots and its associated businesses.

In an announcement on the acquisition, Wittington acknowledged the role of Boots in communities for more than 177 years, adding that it plans to continue to “invest to build on Boots’ strengths and potential.”

This includes upgrading stores, optimising the online experience, and supporting the expansion of healthcare services available to customers, Wittington has said.

Alex Baldock, chief executive officer of Boots, recognised the work of Boots colleagues in supporting people to live “longer, healthier and happier lives,” commenting: “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,” Baldock added.

The Weston group owns Loblaw Companies Limited, a leading food and pharmacy enterprise in Canada, and previously owned Selfridges from 2003–2021.

Galen Weston, chairman of Wittington, will become chairman of Boots on the close of the acquisition, commenting: “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 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,” he said.

Wittington is partnering with Fairfax Financial Holdings Limited on the acquisition and will retain operational control on close of the deal.

Private equity firm, Sycamore Partners, became majority owners of Boots last year.

Stefan Kaluzny, managing director of Sycamore Partners, said: “One year ago, we re-established Boots as a standalone 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,” he added.

The deal is expected to close in the first quarter of 2027 and is subject to regulatory approvals.