The Canadian Weston family is returning to British retail with an $8,9 billion (£6,74 billion) deal to acquire Boots. The deal involves one of the UK's leading pharmacy and beauty supply chains, headquartered in Nottingham, with approximately 1.800 stores and 50.000 employees.
Leading the acquisition is Wittington Investments, the family holding company that controls the Loblaws grocery chain and Shoppers Drug Mart pharmacies in Canada. The deal includes Boots' retail operations in the UK and Ireland, the optical chain, the No7 cosmetics brand, and the franchise business in Thailand.
The investment is also supported by Fairfax, the company that owns The Sporting Life Group and Sleep Country, Canada's largest mattress retailer, which owns the British brand Simba Sleep. The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals.
Galen Weston, chairman of Wittington and the likely future chairman of Boots, emphasized the brand's legacy, consumer trust, and its role in the daily lives of British and Irish citizens. The announced prospect is of stable ownership, accompanied by new investments and a greater focus on operational management.
The deal marks the exit of Stefano Pessina and Sycamore Partners from the divested entity. The Italian entrepreneur acquired Boots in 2007 with the backing of KKR, subsequently maintaining a stake through various corporate transitions and the integration and spin-off from Walgreens.
Pessina expressed satisfaction with the transfer of the chain to owners he believes are solid and capable of understanding its historical heritage. However, he will retain control of the stakes in the Mexican chain Farmacias Benavides and the German pharmaceutical distributor Alliance Healthcare Deutschland.
The sale comes after several unsuccessful attempts. In 2022, Walgreens had put Boots on the market with an indicative valuation of up to £10 billion, but later withdrew the plan as potential buyers encountered difficulties raising financing. In 2024, the possibility of a valuation of around £7 billion was also abandoned.
For the Canadian branch of the Westons, this marks a return to the British high street following the sale of Selfridges, completed in 2022 for £4 billion. The British branch of the family is distinct, linked to Associated British Foods, the company that controls Primark.
According to analyst Richard Hyman, the new ownership could offer Boots a long-term perspective, enhancing its loyalty program and expanding in-store services. Another priority is modernizing a network that, in many locations, has received limited renovations in recent decades.
Boots has already closed over 300 stores in recent years, and the new owners' plans for the network have not yet been clarified. Rising costs of physical retail, the shift to online shopping, and competition from retailers like Savers, Lidl, and Home Bargains weigh on its future.
