Canada's Weston Family Reportedly Nearing Deal to Buy Boots
The potential acquisition by the family behind Primark and Selfridges would scuttle plans for an initial public offering of the British chemist.
Canada's prominent Weston family is reportedly close to acquiring the British chemist Boots in a deal that could be finalized as soon as next week. This potential acquisition by the family, known for their ownership of brands like Primark and Selfridges, would mean abandoning plans for Boots to return to the stock market.
Sources indicate the sale could value the chemist at approximately £6.8 billion. The Financial Times first reported on the potential deal. The acquisition by the Westons would be a significant blow to the London Stock Exchange, which has been seeking to attract more companies to list.
Boots, which began as a family herbal medicine shop in Nottingham in 1849, was previously owned by Walgreens Boots Alliance. In August of the previous year, the private equity firm Sycamore Partners acquired the U.S. parent company for £7.4 billion, subsequently forming the Boots Group. This group includes the chemist's U.K. and Irish operations, Boots Opticians, and the No7 Beauty Company.
Earlier this year, Stefano Pessina, the head of Walgreens Boots Alliance and a significant stakeholder in Boots, suggested that Sycamore Partners would eventually need to sell its stake. In June, preliminary discussions with Australian pharmacists Sigma Healthcare ended without a deal, which had reignited hopes for a public offering.
"A takeover by the Westons makes it unlikely that an IPO of Boots would happen any time soon," said Dan Coatsworth, head of markets at AJ Bell. "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."
Coatsworth added that the Weston family would likely aim to improve the chemist's efficiency and potentially invest significantly in store improvements.
The Weston family's business interests in the UK include Associated British Foods, which owns Primark, and Fortnum & Mason. The Canadian branch of the family controls grocery chain Loblaws and pharmacy chain Shoppers Drug Mart through Wittington Investments. They sold the luxury department store Selfridges in 2022 for £4 billion.
Boots employs 51,000 staff in Britain and has recently seen increased interest from buyers and investors, partly due to strong sales in its beauty products and weight-loss treatments. Last year, the company reported annual sales of £7.5 billion, a 3.2 percent increase, driven by demand for beauty items. Alex Baldock, former CEO of Currys, currently leads Boots, a move that had previously bolstered optimism for a potential stock market listing.