The Weston family, known for their prominent pharmacy and grocery chains in Canada, is expanding their business by acquiring the U.K. drugstore Boots. Wittington Investments, the Weston family holding company, announced on Wednesday the purchase of Boots for $8.9 billion US (approximately $12.7 billion Cdn), including debt, from private equity firm Sycamore Partners.
In addition to Boots’s retail operations in the U.K. and Ireland, Wittington will also gain ownership of its operations in Thailand, franchised businesses, optical division, and No7 Beauty Company. Toronto-based holding company Fairfax Financial Holdings Ltd. will collaborate with Wittington on the acquisition. Galen Weston is set to become Boots’s chairman post-closing, with Wittington assuming operational control.
Galen Weston expressed his attraction to Boots, highlighting its longstanding presence and essential role in the U.K. and Ireland. He mentioned plans for enhancing the business through long-term ownership, capital investment, and improved operational focus to better serve customers.
Boots, a leading retailer in Britain, bears resemblances to Shoppers Drug Mart, a Canadian pharmacy giant connected to the Weston family. The Westons are renowned for their contributions to Loblaw Companies Ltd., George Weston Ltd., and luxury department store Holt Renfrew. They also hold interests in Associated British Foods, the parent company of various well-known brands.
The potential return of Boots to Canada remains uncertain, but if it were to happen, it could pose as competition for Shoppers Drug Mart, which operates around 1,350 stores across the country. The acquisition of Boots by the Westons, speculated since late September, was deemed reasonable by analysts due to the family’s expertise in retail pharmacy.
As part of the deal, Sycamore Partners, along with Stefano Pessina and his family, will retain ownership of Boots Group’s interests in Farmacias Benavides and Alliance Healthcare Deutschland. The sale is seen as a positive move for Boots, allowing its management team and employees to focus on their business and customers.