Canada’s prominent Weston family, known for their pharmacy and grocery chains, is expanding their business portfolio by acquiring U.K.-based drugstore Boots.
The family’s holding company, Wittington Investments, announced on Wednesday the purchase of Boots for $8.9 billion US (approximately $12.7 billion Cdn), inclusive of debt, from private equity firm Sycamore Partners.
In addition to Boots’s retail presence in the U.K. and Ireland, Wittington will also take over its operations in Thailand, franchised businesses, optical division, and No7 Beauty Company.
Toronto-based holding company Fairfax Financial Holdings Ltd. will collaborate with Wittington in this acquisition. Following the expected closure in the first quarter of 2027, Galen Weston will assume the role of Boots’s chairman, with Wittington taking operational control.
In a statement, Galen Weston expressed his admiration for Boots as a longstanding British business with a respected brand and an integral part of daily life in the U.K. and Ireland.
He highlighted the potential for enhancing the business further through sustained ownership, increased capital investment, and a renewed customer-centric approach for long-term success.
Boots, a prominent retailer in the U.K., bears similarities to Shoppers Drug Mart, a Canadian pharmacy giant associated with the Weston family.
A Shoppers Drug Mart pharmacy offering COVID-19 vaccines in Bowmanville, Ontario on Wednesday, January 12, 2022. (Doug Ives/The Canadian Press)
The Westons are renowned in Canada for their development of Loblaw Companies Ltd., George Weston Ltd., and ownership of luxury retailer Holt Renfrew. Loblaw Cos. Ltd. acquired Shoppers Drug Mart in 2014.
They also hold a stake in Associated British Foods, the parent company of value retailer Primark, and producers of Twinings tea, Mazola oils, Mazzetti vinegars, Ovaltine, and Fleischmann’s yeast.
The potential return of Boots, established in 1849 and previously operated in Canada, to the country remains uncertain. A re-entry of Boots into Canada could pose competition for Shoppers Drug Mart, which operates about 1,350 stores in the country.
Boots operates approximately 1,800 outlets. When rumors of the Weston family’s interest in acquiring Boots surfaced in late September, analyst Irene Nattel from RBC Capital Markets viewed the potential deal positively.
Nattel noted the Weston family’s extensive retail pharmacy knowledge, which could be beneficial in the event of a successful transaction.
The announcement of the acquisition also mentioned that Sycamore Partners, along with Stefano Pess