Westons To Buy U.K. Pharmacy Chain Boots For US$8.9B

The family behind Canada’s biggest pharmacy and grocery chains is growing its empire with the acquisition of U.K. drugstore Boots.

Weston family holding company Wittington Investments said Wednesday that it will purchase Boots for US$8.9 billion (C$12.7 billion), including debt, from private equity firm Sycamore Partners.

Along with Boots’ retail operations in the U.K. and Ireland, Wittington will acquire its operations in Thailand, franchised businesses, its optical division and No7 Beauty Company.

Toronto-based holding company Fairfax Financial Holdings Ltd. will partner with Wittington on the acquisition and after its closing, expected in the first quarter of 2027, Galen Weston will become Boots’ chairman. Wittington having operational control upon close.

Weston, who declined an interview Wednesday, said in a press release that he was drawn to Boots because it is “one of Britain’s most enduring businesses, with a rich heritage, a trusted name and a vital role in everyday life across the U.K. and Ireland.”

However, he hinted there is some room for improvement.

“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.

Boots is among Britain’s most prominent retailers and has many similarities to Shoppers Drug Mart, the Canadian pharmacy giant with ties to the Westons.

The Westons are best known in Canada for building Loblaw Cos. Ltd. and George Weston Ltd. and owning luxury department store Holt Renfrew. Loblaw bought Shoppers Drug Mart in 2014.

They also have a stake in Associated British Foods, the parent company of value retailer Primark and the makers of Twinings tea, Mazola oils, Mazzetti vinegars, Ovaltine and Fleischmann’s yeast.

It’s unclear whether the acquisition will bring Boots, which was founded in 1849 and operated for a time in Canada, back to the country. If Boots made a Canadian return, it could become a competitor with Shoppers, which counts about 1,350 stores in Canada. Boots has roughly 1,800 locations.

When a Boots acquisition by the Westons was rumoured in late September, RBC Capital Markets analyst Irene Nattel said she thought a deal would made some sense.

“We believe there is substantial organizational knowledge and understanding of retail pharmacy within the Weston family of businesses and investments, knowledge that would prove extremely useful should a transaction come to fruition,” she wrote in a Sept. 30 note to investors.

She didn’t see a potential deal as having much impact on Loblaw or George Weston, if it were completed through Wittington.

As part of the deal announced Wednesday, Sycamore Partners, along with Stefano Pessina and his family, will retain ownership of The Boots Group’s interests in Farmacias Benavides and Alliance Healthcare Deutschland.

A spokesperson for Sycamore said no one from the company would do an interview about the transaction Wednesday.

“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,” said Sycamore’s managing director Stefan Kaluzny, said in a press release.

“This transaction is a testament to the work they have done and the incredibly bright future ahead.”