The family behind Canada’s largest pharmacy and grocery chains is expanding its retail holdings with the purchase of British drugstore chain Boots.
Wittington Investments, the Weston family’s holding company, announced Wednesday it will acquire Boots for $12.7 billion, including debt, from private equity firm Sycamore Partners. The deal covers Boots’ retail operations in the United Kingdom and Ireland, as well as its business in Thailand, its franchised operations, its optical division and No7 Beauty Co.
Toronto-based Fairfax Financial Holdings Ltd. said it will contribute up to US$2.3 billion toward the purchase and will hold a 50 per cent stake in Boots once the transaction closes, which is expected in the first quarter of 2027. Wittington will retain operational control of the business, and Galen Weston will become Boots’ chairman.
In a press release, Weston said he was drawn to Boots because of its long history and prominent role in daily life across the UK and Ireland. He also said there was room to strengthen the business further through sustained investment and operational focus.
Ties to Canadian Retail
Boots bears similarities to Shoppers Drug Mart, the Canadian pharmacy chain connected to the Westons through Loblaw Cos. Ltd., which acquired Shoppers in 2014. The Westons are also known in Canada for building George Weston Ltd. and owning Holt Renfrew, while the UK branch of the family holds a stake in Associated British Foods, parent of Primark and several food brands including Twinings and Ovaltine.
Boots, founded as an herbalist in 1849, remains a fixture on British high streets but has faced increasing competition from cosmetics retailers such as Sephora. Neil Saunders, managing director of GlobalData, said Wittington’s retail experience suggests it is positioned to invest in the chain rather than take a private-equity approach to running it down. He said he expects gradual improvements over time, including upgraded stores, more investment in beauty products, a stronger e-commerce presence and expansion of the No7 brand, along with a possible push into wellness and preventive health services.
Possible Canadian Spillover
Boots previously operated in Canada and, while not currently well known domestically, could become a competitor to Shoppers Drug Mart, which has about 1,350 Canadian stores compared with Boots’ roughly 1,800 UK locations, if it were to re-enter the market.
Even without a Canadian return, Amar Singh, a senior director at consultancy Kantar, said both businesses could benefit from shared best practices and possibly infrastructure. He said European-style experiential store formats could influence Canadian shopping experiences over time.
RBC Capital Markets analyst Irene Nattel, writing in a note after the deal was first rumoured in late September, said the transaction made sense given the Weston family’s deep knowledge of retail pharmacy, though she said she did not expect it to have much impact on Loblaw or George Weston Ltd.
Deal Structure and Remaining Stakes
As part of the agreement, Sycamore Partners along with Stefano Pessina and his family will retain ownership of Boots Group’s interests in Farmacias Benavides and Alliance Healthcare Deutschland. Pessina, formerly Boots’ chair, bought the chain in 2007 before selling it to Sycamore while keeping a stake in the business.
Sycamore’s managing director Stefan Kaluzny said in a press release that the company had re-established Boots as a standalone business a year earlier, allowing its management and more than 50,000 employees to focus on customers, calling the transaction a reflection of that work.
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