Canada's Weston family buys UK pharmacy chain Boots for $8.9 billion

Weston Family Buys UK Boots Pharmacy Chain for $8.9 Billion Including Debt

Acquisition Details and Strategic Implications

Overview of the Deal

Oct 7(Reuters) - The holding company of Canada's Weston family has agreed to buy British health and beauty retailer Boots from private equity firm Sycamore Partners and the Pessina family for $8.9 billion, including debt, it said on Wednesday.

Assets Included in the Acquisition

Wittington Investments, Limited will acquire Boots' retail operations in the UK and Ireland, Boots Opticians, No7 Beauty Company and its Thailand and franchised businesses.

Weston Group's Background and Partnerships

Weston Group's Retail Portfolio

The Weston group owns Canadian grocer Loblaw and Shoppers Drug Mart, Canada's largest pharmacy, health and beauty business and previously owned London department store Selfridges from 2003 to 2021.

Partnership with Fairfax Financial Holdings

Wittington is partnering with Fairfax Financial Holdings, a Toronto-based holding company, on the deal, with Wittington having operational control.

Future Plans for Boots

Investment and Expansion Strategy

It said its plans for Boots include investing in stores and online and expanding healthcare services.

Leadership Changes

Galen Weston, Wittington's chair, will become Boots' chair.

Comments from Galen Weston

"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," he said.

"We see a meaningful opportunity to make a great business even better."

Sycamore and Pessina Family's Retained Interests

Sycamore, in partnership with Stefano Pessina and his family, will retain ownership of The Boots Group's other interests in Farmacias Benavides and Alliance Healthcare Deutschland.

Sycamore took Boots' then parent Walgreens Boots Alliance for $10 billion last year.

(Reporting by Raechel Thankam Job and Neeshita Beura in Bengaluru and James Davey in London; Editing by Joyjeet Das and Emelia Sithole-Matarise)