Sycamore sells Boots in $8.9 billion deal
British pharmacy and beauty chain Boots has a new owner.
Toronto-based Wittington Investments, holding company of the Weston family, has entered into a definitive agreement to acquire The Boots Group, which is majority owned by Sycamore Partners, in partnership with Stefano Pessina and his family. Toronto-based Fairfax Financial Holdings is partnering with Wittington on the acquisition.
The deal is valued at $8.9 billion, including assumed debt. The transaction does not include Boots’ businesses in Germany and Mexico, which remain under their current ownership.
The sale did not come as a surprise as Sycamore has been widely expected to spin off and sell Boots after its acquisition of Walgreen Boots Alliance last year. It subsequently split the company into five independent businesses including Walgreens and The Boots Group.
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.
Following the closing of the transaction, it is expected that Fairfax will own 50% of the equity of Boots, with Wittington having operational control and Galen Weston serving as chair. The transaction does not include Boots’ businesses in Germany and Mexico.
The Westons are the owners of Canada’s Loblaws grocery chain and pharmacy retailer Shoppers Drug Mart.
“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,” said Galen Weston. “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, capital investment and renewed operating focus required to serve customers with excellence for generations to come.