Wittington Investments has announced a deal to buy high street chain Boots for 8.9 billion dollars (£6.7 billion).
Wittington Investments is the holding company for the Canadian branch of the billionaire Weston family.
It comes only a year after Sycamore took over Boots through the acquisition of parent firm Walgreens Boots Alliance, before splitting the business into divisions.
The takeover deal will see Wittington acquire Boots’ retail and pharmacy operations in the UK and Ireland, Boots Opticians, the No7 Beauty Company, and its Thailand and franchise businesses.
Galen Weston, chairman of Wittington, who will become chairman of Boots, said: “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.
“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.”
Wittington Investments had been in advanced talks with Boots owner Sycamore Partners, with reports suggesting a deal could be reached as early as this week.
The two sides had reportedly been discussing a sale for several months, although negotiations stalled earlier this year amid wider economic uncertainty.
It is not the first time the Weston family has tried to buy Boots. An earlier bid was rejected after the family’s offer for the high street chain was reduced.
The agreement also brings an end to speculation that Boots could return to the London Stock Exchange.
Boots could soon change hands in a deal worth around £7billion | PA
Sycamore had considered floating the retailer after taking control of Walgreens Boots Alliance and separating Boots from its US operations.
Australian pharmacy group Sigma Healthcare had also held takeover talks before pulling out of the process during the summer.
Boots has meanwhile been reporting stronger trading. Recent accounts showed revenue rose 3.2 per cent to £7.5billion, while pre-tax profit increased 25 per cent to £337million.
Buying Boots will also mark a major return to British retail for the Canadian branch of the Weston family after it sold Selfridges for £4billion in 2022.
The deal marks the Weston family’s return to major UK retail after selling Selfridges for around £4billion in 2022
|
FLICKRThrough Wittington Investments, the family already controls Canadian supermarket giant Loblaw and Shoppers Drug Mart, giving it significant experience in both grocery and pharmacy retail.
Walgreens Boots Alliance boss, Italian billionaire Stefano Pessina, and his wife, Ornella Barra, continued to own a 44 per cent stake in Boots.
Mr Pessina said today: “Boots is an iconic brand and a British institution. It has been one of the privileges of my and Ornella’s life to have been so closely associated with Boots over the last 20 years.
“We are delighted to be passing on a thriving Boots to strong and reliable owners who understand the value of its great heritage.
“Our best wishes go with them as they lead Boots into its next chapter, and our sincere thanks go to all on the Boots’ team who helped us deliver so much over the past 20 years!”