Boots could change hands for around £7bn in a deal that would mark a fresh twist in the ownership of one of Britain’s best-known high street brands, just a year after its previous takeover.
Sycamore Partners, the US private equity group that acquired Boots through its $23.7bn takeover of Walgreens Boots Alliance last year, is understood to be in advanced talks to sell the pharmacy chain to the Canadian arm of the billionaire Weston family.
A deal could be agreed within weeks, according to the Wall Street Journal, potentially ending Sycamore’s ownership of Boots after only a short period.
Sycamore has spent the past year reshaping the business, separating Boots from Walgreens’ US operations and creating a standalone UK-headquartered group last August.
The newly constituted business combines Boots UK and Ireland, its opticians division, No7 Beauty and pharmacy operations in Thailand, Mexico and Germany.
The Westons, whose retail empire includes Canadian supermarket group Loblaws and Shoppers Drug Mart, had already been linked to a possible acquisition of Boots earlier this year through their investment company, Wittington Investments.
Sycamore formally launched a sale process earlier this year as it assessed options for the pharmacy business. Australian pharmacy group Sigma Healthcare entered discussions before withdrawing from the process over the summer.
A London flotation was also considered as an alternative to a sale. An initial public offering would have returned Boots to the London Stock Exchange and potentially offered UK investors the chance to buy shares in one of the country’s most recognisable retail names.
A sale to the Westons would instead remove that possibility, dealing a potential setback to the London market as it attempts to persuade major businesses to list in Britain.
Dan Coatsworth, head of markets at AJ Bell, said: “This would be a major blow to the London Stock Exchange which has desperately been trying to attract more companies to float in London.
“Boots is a major name on the high street and exactly the type of brand that could attract retail investors keen to put money into a name they know well.”
The transaction would also mark a return to British retail for the Weston family, which sold luxury department store chain Selfridges for £4bn in 2022.
The family’s interests stretch across several major retail markets. In Canada, Wittington Investments controls Loblaws and Shoppers Drug Mart, giving the family extensive experience in both grocery and pharmacy.
The British side of the Weston family’s retail empire includes a majority stake in Primark through Associated British Foods, which also owns brands including Twinings and Ryvita. The family additionally owns Fortnum & Mason.
The combination of Boots’ pharmacy network and the Westons’ experience operating large-scale retail businesses would make the chain a natural addition to the family’s portfolio.
Coatsworth said the Westons “have considerable experience with retail and Boots would be a logical addition to their empire”.
“The family are likely to focus on making Boots run more efficiently and driving growth, potentially investing big sums to improve stores and making it more relevant for the modern age,” he added.
For Sycamore, a sale would come barely a year after it took control of Walgreens Boots Alliance, highlighting the rapid restructuring of the pharmacy group under private equity ownership.
For the Westons, meanwhile, the deal would deepen their presence in pharmacy and revive their exposure to a major British high street brand — while leaving London’s stock market facing the loss of another potentially high-profile listing.
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